Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

(2 marks) 
88 
Which of the following is the name given to unemployment which is the result of 
aggregate demand in the economy being too small to create employment opportunities 
for all those willing, and able, to work? 
A Structural 
unemployment 
B Cyclical 
unemployment 
C Frictional 
unemployment 
D 
Real wage unemployment 
(2 marks) 
89 
Rapid economic growth may lead to increased demand for imports. 
Is this statement TRUE or FALSE? 
A True 
B False 
(1 mark) 
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PRA CTICE OBJE CTIVE TEST QUESTIONS : 
SECTION 1 
K APLA N PUBLISH ING 
21 
90 
Country Y has an increasingly high rate of unemployment. Which of the following 
statements is/are correct regarding the effect of this on consumers and businesses? 
(i) 
Businesses may offer lower wages to staff 
(ii) 
Government spending on social security will fall 
(iii) 
Businesses will find it easier to locate new employees 
(iv) 
Businesses may find that demand for their goods and services falls 
A 
(i), (ii) and (iii) only 
B 
(i), (iii) and (iv) only 
C 
(i) and (iii) only 
D 
All four are correct 
(2 marks) 
91 
Which of the following are typical macroeconomic policy objectives of governments? 
(i) Economic 
growth 
(ii) 
Money supply management 
(iii) 
Management of inflation 
(iv) 
Creation of a trade surplus 
A 
(ii) and (iii) only 
B 
(i) and (iii) only 
C 
(i) and (iv) only 
D 
(ii) and (iv) only