Lesson 4.2.3.2

4.2.3.2 Employment and unemployment Quiz: AQA Economics, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.2.3.2, Employment and unemployment: 20 multiple choice questions for the AQA Economics (7136), Unit 2: The national and international economy, written with Revision Ninja.

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The 20 questions

  1. Which UK unemployment measure counts individuals receiving unemployment-related benefits?

    • Labour Force Survey
    • Underemployment rate
    • Claimant count
    • Economically inactive

  2. How does the Labour Force Survey measure UK unemployment?

    • Employer returns
    • Household survey
    • Tax records
    • Benefit claims

  3. What type of unemployment occurs when workers choose not to accept jobs at prevailing wage rates?

    • Involuntary unemployment
    • Structural unemployment
    • Voluntary unemployment
    • Cyclical unemployment

  4. What type of unemployment occurs when workers are temporarily between jobs?

    • Structural unemployment
    • Frictional unemployment
    • Real wage unemployment
    • Cyclical unemployment

  5. Unemployment caused by a long-term decline in a specific industry is known as what?

    • Frictional unemployment
    • Structural unemployment
    • Cyclical unemployment
    • Seasonal unemployment

  6. What type of unemployment varies predictably with specific times of the calendar year?

    • Frictional unemployment
    • Seasonal unemployment
    • Cyclical unemployment
    • Structural unemployment

  7. What is the rate of unemployment that exists when the labour market is in equilibrium?

    • Cyclical rate
    • Underemployment rate
    • Natural rate
    • Participation rate

  8. A country has a labour force of 30 million, of whom 28 million are employed. What is the unemployment rate?

    • 93.3 per cent
    • 7.1 per cent
    • 2 per cent
    • 6.7 per cent

  9. What causes real wage unemployment in a labour market?

    • Inadequate aggregate demand
    • Industrial decline
    • Excess real wages
    • Seasonal demand changes

  10. Which policy is most effective at reducing cyclical unemployment?

    • Contractionary fiscal
    • Trade protectionism
    • Interest rate increases
    • Expansionary demand-side

  11. A factory automates its production, so many workers' skills are no longer needed and they struggle to find new jobs. What type of unemployment is this?

    • Structural unemployment
    • Seasonal unemployment
    • Frictional unemployment
    • Voluntary unemployment

  12. Which UK unemployment measure directly depends on government benefit eligibility rules?

    • Real wage count
    • Labour Force Survey
    • Claimant count
    • Natural rate measure

  13. Which type of unemployment directly reduces the position of the long-run aggregate supply curve?

    • Structural unemployment
    • Cyclical unemployment
    • Frictional unemployment
    • Seasonal unemployment

  14. The labour force is 33 million and there are 1.5 million unemployed. What is the unemployment rate?

    • 1.5 per cent
    • 4.5 per cent
    • 3.3 per cent
    • 5.0 per cent

  15. Which of the following is a direct personal consequence of long-term unemployment?

    • Increased GDP
    • Demand-pull inflation
    • Loss of income
    • Higher tax revenue

  16. Which policy is most effective for reducing demand-deficient (cyclical) unemployment?

    • Supply-side reforms
    • Expansionary fiscal policy
    • Reducing benefit levels
    • Retraining programmes

  17. Which measure is most likely to reduce the natural rate of unemployment?

    • Lower interest rates
    • Increased income tax
    • Labour market reforms
    • Higher government spending

  18. What process describes long-term unemployment permanently damaging an economy's productive capacity?

    • Crowding out
    • Disinflation
    • Hyperinflation
    • Hysteresis

  19. Which type of unemployment is directly caused by real wages remaining above the market-clearing equilibrium?

    • Frictional unemployment
    • Seasonal unemployment
    • Cyclical unemployment
    • Real wage unemployment

  20. Why might the claimant count understate the true level of unemployment?

    • Includes all students
    • Uses large samples
    • Overcounts job seekers
    • Excludes non-claimants

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