ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The economy is getting better
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The Government spending is on the increase
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The economy is getting worse
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The government has increased the money supply
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Detailed explanation-1: -A worsening unemployment rate is usually a common sign of an impending economic depression. With high jobless numbers, consumers will lose their purchasing power and eventually lower demand.
Detailed explanation-2: -Unemployment adversely affects the disposable income of families, erodes purchasing power, diminishes employee morale, and reduces an economy’s output.
Detailed explanation-3: -Market failure occurs when resources aren’t used efficiently. This can be seen in any market, whether a publics good or a private good. Market failure can also be seen in the provision of unemployment benefits and unemployment insurance, as the resources could be used inefficiently and misused in different ways.
Detailed explanation-4: -Increases in the unemployment rate typically indicate: periods of economic recession.
Detailed explanation-5: -Lower economic growth (GDP) – As fewer people have jobs, firms won’t be able to produce as many goods and services. As a result, the output of goods and services in the economy, GDP, will be lower. This also has an impact on government taxation and spending and will negatively affect their finances.