Economics · Oct / Nov 2025 · Paper 13 · Question 23

A country experiences a significant fall in unemployment. What is a possible advantage and a possible disadvantage of such a fall?

1. Apossible advantage: fall in government spending on unemployment benefits; possible disadvantage: fall in labour disputes
2. Bpossible advantage: fall in tax revenue; possible disadvantage: fall in poverty
3. Cpossible advantage: rise in living standards; possible disadvantage: rise in inflation rate
4. Dpossible advantage: rise in output; possible disadvantage: rise in labour mobility

As printed in the paper