Neco Model Questions Vol1 2023 Economics Question 2

Practice objective / multiple choice question 2 from the 2023 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 2 NECO_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

In an economy with a labour force of 5 million, the unemployment rate is 12 %. Of the unemployed, 4 % of the labour force are structurally unemployed and 3 % are frictionally unemployed. (a) Calculate the number of people unemployed due to cyclical factors. (b) If the unemployment rate falls to 8 % while the structural and frictional unemployment numbers remain unchanged, how many people are now unemployed due to cyclical factors?

Answer Options

A. Initially 300,000; after the fall 100,000
B. Initially 250,000; after the fall 75,000
Correct Answer C. Initially 250,000; after the fall 50,000
D. Initially 200,000; after the fall 50,000
Correct Answer
C
Correct Option:
Initially 250,000; after the fall 50,000

About This Question

This is Neco Model Questions Vol1 2023 Economics Question 2. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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