c.a.p
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1. Possible causes of involuntary unemployment are:
A.
Minimum wage agreements
B.
Trade unions
C.
Scale economies
D.
De-industrialisation
E.
All of the above

2. Which of the following is a type of inflation?
A.
Profit-Driven
B.
Supply-Pull
C.
Demand-Push
D.
Wage-Pull
E.
Cost-Push

3. ‘Structural’ unemployment is related to:
A.
Wages rising too high
B.
Skills shortages
C.
Reduced demand in the economy
D.
Seasonal factors
E.
Rising production costs

4. If there are 4 million people unemployed and 40 million people employed, the rate of unemployment will be:

A.
4 per cent
B.
9 per cent
C.
10 per cent
D.
11 per cent
E.
40 per cent

5. Which of the following would cause 'cost-push' inflation:
A.
Easing of monetary and credit conditions
B.
More domestic goods being sold to foreigners
C.
Consumers saving less out of their disposable income
D.
Rising imported raw material prices
E.
Government spending exceeding taxation
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rjwilliams3
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These questions seem very strange and don't seem to test an understanding of the actual question, but here you go.

1. I would argue all of the above, but I am not entirely sure about this question.

2. Cost-push is a type of inflation. Demand-pull is the other type, but this is not an option.

3. Structural unemployment is related to workers not having the correct skills for jobs, e.g. all workers are trained in manufacturing, but the economy moves away from manufacturing jobs towards services sector. Based on the available answers I would go with skills shortage, although you could probably argue that reduced demand in the economy (if this was structural, rather than recessionary which is probably what it is indeed implying) could lead to the economy shifting in a certain area leading to structural unemployment.

4. 91% - the unemployment rate equals the number of unemployed / total number of people. Therefore 4/44.

5. Well this answers Q2 for you. Rising imported raw materials is the answer for this question, as this leads to higher costs which pushes up the price of domestic goods leading to cost-push inflation.

Best,
Rhys
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