Gce Model Questions Vol1 2018 Economics Question 22

Practice objective / multiple choice question 22 from the 2018 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 22 GCE_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

In an economy the labour force is divided among three sectors. Agriculture employs 40% of the labour force with an unemployment rate of \(8\%\). Manufacturing employs 35% with an unemployment rate of \(12\%\). Services employ 25% with an unemployment rate of \(5\%\).\n\n(a) Calculate the overall unemployment rate for the economy.\n(b) If the natural rate of unemployment is \(6\%\), determine the amount of cyclical unemployment (as a percentage).

Answer Options

A. Overall unemployment 9.10%; cyclical unemployment 3.10%
B. Overall unemployment 7.50%; cyclical unemployment 1.50%
C. Overall unemployment 8.20%; cyclical unemployment 2.20%
Correct Answer D. Overall unemployment 8.65%; cyclical unemployment 2.65%
Correct Answer
D
Correct Option:
Overall unemployment 8.65%; cyclical unemployment 2.65%

About This Question

This is Gce Model Questions Vol1 2018 Economics Question 22. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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