Neco 2025 Economics Question 5

Practice objective / multiple choice question 5 from the 2025 Neco Economics examination.

Neco 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 5 NECO • 2025 • ECONOMICS • objective

In a country the labour force is 10 million. The current unemployment rate is 12 %. The natural rate of unemployment is 6 %, consisting of frictional unemployment of 2 % and structural unemployment of 4 %. (a) Calculate the number of people unemployed due to cyclical factors. (b) What percentage of the total unemployed are frictionally unemployed? Give your answer to one decimal place.

Answer Options

A. Cyclical unemployment = 0.8 million people; Frictional unemployment = 15.0 % of total unemployed
B. Cyclical unemployment = 0.7 million people; Frictional unemployment = 18.3 % of total unemployed
C. Cyclical unemployment = 0.5 million people; Frictional unemployment = 20.0 % of total unemployed
Correct Answer D. Cyclical unemployment = 0.6 million people; Frictional unemployment = 16.7 % of total unemployed
Correct Answer
D
Correct Option:
Cyclical unemployment = 0.6 million people; Frictional unemployment = 16.7 % of total unemployed

About This Question

This is Neco 2025 Economics Question 5. It is one of the objective questions from the 2025 Neco Economics examination.

Difficulty level: Medium .

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