Optional20 marks
Case study · UK living standards and supply-side policies
Evaluate the use of market-based supply-side policies to increase UK employment.
Specification point 2.1.3 · Theme 2
Employment and unemployment
Measures of economic performance · The UK economy – performance and policies
Questions tagged to this specification point
27 questions
Essay questions
Long-form evaluation and discussion
Optional25 marks
Case study · The food delivery industry
Evaluate the microeconomic and macroeconomic effects of significant increases in the minimum wage. Refer to restaurants or other food delivery services in your answer.
3.5.3 · Wage determination in competitive and non-competitive markets2.1.3 · Employment and unemployment
Optional20 marks
Case study · The UK economy
Evaluate government policies, apart from migration policies, that could be used to increase the employment rate in the UK.
Data-response questions
Questions built around exam extracts
8 marks
Case study · The German economy
Examine two likely effects of the forecast change in the rate of unemployment between 2019 to 2020, on firms in Germany. Refer to Figure 4 in your answer.
4 marks
Case study · The UK economy
With reference to Figure 1, explain one reason why the claimant count and the ILO measure of unemployment differ.
15 marks
Case study · The UK economy
With reference to Extract B and Figure 1, discuss the likely impact of migration on employment and unemployment in the UK.
Short-answer questions
Focused calculations, explanations and diagrams
2 marks
ContextChart: UK real GDP percentage growth, quarter 1 2022 to quarter 1 2023.
Explain one likely disadvantage of a decline in GDP on workers.
2 marks
ContextThe UK’s labour force inactivity rate was 20.2% in January 2020 and increased to 21.5% in January 2022. After an increase in the early stages of the global health crisis, most developed countries have recorded a decrease in the inactivity rate back to, and below, levels in 2019. This is not the case in the UK.
The total UK labour force in January 2022 was 34.5 million. With reference to the information above, calculate the total number of inactive people in the UK labour force in January 2022.
2 marks
ContextThe UK’s labour force inactivity rate was 20.2% in January 2020 and increased to 21.5% in January 2022. After an increase in the early stages of the global health crisis, most developed countries have recorded a decrease in the inactivity rate back to, and below, levels in 2019. This is not the case in the UK.
Explain one likely reason for the high levels of inactivity in the UK labour force.
3 marks
ContextBetween January 2020 and December 2020, the rate of unemployment in the UK increased from 3.9% to 5.2%. This was as a result of the UK economy experiencing a recession.
With reference to the information above, explain one possible effect of the increase in the rate of unemployment on the UK government budget.
3 marks
ContextChart: UK long-term migration (immigration, emigration and net migration), September 2013 to September 2019.
With reference to the above chart, explain one likely effect of migration on employment in the UK.
4 marks
ContextUK unemployment rate (%), December 2020 – June …
With reference to the chart on the previous page, explain one likely reason for the change in the UK’s rate of unemployment.
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2 marks
ContextNumber of unemployed persons, UK, as measured by the claimant count, thousands …
Calculate the percentage change in the number of UK unemployed persons between April and July 2018. You are advised to show your working.
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2 marks
ContextNumber of unemployed persons, UK, as measured by the claimant count, thousands …
Explain one likely reason for the increase in the number of people unemployed in the UK over the time period shown.
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3 marks
ContextUK unemployment rate as a % of all those economically active, seasonally adjusted, from 2008 to 2018 % unemployed …
With reference to the chart above, explain one likely economic effect of the change in the UK unemployment rate between 2012 and 2018.
4 marks
ContextThe chart below shows the UK unemployment rate, seasonally adjusted, from 2008 to …
Explain the likely effects on the circular flow of income of the change in unemployment between 2013 and 2015.
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3 marks
ContextBetween 2008 and 2014 the number of people in the UK looking to work longer hours and therefore receive more total pay increased from 76 482 to 142 788. Over the same period the unemployment rate fell to 5.7%.
With reference to the statement above, explain the term ‘under-employment’.
1 mark
ContextThe table below shows claimant count data for the UK. Number of Claimants August …
Define the term ‘claimant count’.
2 marks
ContextThe table below shows claimant count data for the UK. Number of Claimants August …
Calculate the percentage change in the claimant count from August 2014 to February 2015.
Multiple-choice questions
Quick checks of economic understanding
A-level Paper 2, June 2025, Q5(c)Multiple choice
1 mark
ContextThe UK’s labour force inactivity rate was 20.2% in January 2020 and increased to 21.5% in January 2022. After an increase in the early stages of the global health crisis, most developed countries have recorded a decrease in the inactivity rate back to, and below, levels in 2019. This is not the case in the UK.
Which one of the following would be the most likely result of an increase in the rate of employment?
ADeflation
BImprovement in living standards
CIncrease in absolute poverty
DRecession
AS Paper 2, June 2025, Q1(a)Multiple choice
1 mark
ContextBetween January 2020 and December 2020, the rate of unemployment in the UK increased from 3.9% to 5.2%. This was as a result of the UK economy experiencing a recession.
Which one of the following best describes this cause of unemployment?
ACyclical
BFrictional
CSeasonal
DStructural
AS Paper 2, June 2024, Q3(a)Multiple choice
1 mark
ContextChart: UK long-term migration (immigration, emigration and net migration), September 2013 to September 2019.
Which one of the following can be inferred from the above chart?
ABetween September 2013 and September 2016, there were nearly 100 000 more people leaving the UK than entering the UK
BImmigration to the UK is likely to decrease the short-run AS curve
CSince the EU referendum, net migration has fallen by around 80 000
DThere has been a significant decrease in emigration throughout the given period
A-level Paper 2, June 2023, Q2(a)Multiple choice
1 mark
ContextUK unemployment rate (%), December 2020 – June …
With reference to the chart, which one of the following is true?
Afell by 1.4% between December 2020 and April 2022
Bfell by one percentage point between February 2021 and December 2021
Cwas highest in March 2022 and lowest in December 2020
Dwill continue to rise but at a slower rate
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A-level Paper 2, November 2020, Q4(c)Multiple choice
1 mark
ContextNumber of unemployed persons, UK, as measured by the claimant count, thousands …
Which one of the following types of unemployment is most likely to be caused by a technological change in an industry?
ACyclical
BReal wage
CSeasonal
DStructural
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A-level Paper 2, June 2017, Q1(a)Multiple choice
1 mark
ContextThe chart below shows the UK unemployment rate, seasonally adjusted, from 2008 to …
Which one of the following types of unemployment best explains the change in the data between 2008 and 2010?
ACyclical
BFrictional
CSeasonal
DVoluntary
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AS Paper 2, June 2017, Q2(b)Multiple choice
1 mark
ContextBetween 2008 and 2014 the number of people in the UK looking to work longer hours and therefore receive more total pay increased from 76 482 to 142 788. Over the same period the unemployment rate fell to 5.7%.
Which one of the following is the most likely reason for a fall in the unemployment rate?
AIncreasing unemployment benefit payments
BDecreasing real GDP
CDecreasing funding for apprenticeships
DIncreasing consumer spending
AS Paper 2, June 2016, Q3(c)Multiple choice
1 mark
ContextThe table below shows claimant count data for the UK. Number of Claimants August …
Which one of the following is likely to cause a reduction in the claimant count?
AAn increase in the weekly payment for claimants
BA compulsory weekly interview for every claimant
CAn increase in the size of the workforce
DA fall in employment
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