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21 exam-style questions with model answers, plus 32 quick multi-choice questions — every question on the site for this standard, grouped by the 7 pages of notes they come from.
Write a full answer before you reveal the model one — that comparison is where the marks come from. Every block links back to the notes that teach it.
State the three conditions a person must meet to be counted as unemployed by Stats NZ, and state how the unemployment rate is calculated.
Explain in detail why the official unemployment rate may understate the true extent of unemployment in New Zealand.
Over one year, New Zealand's official unemployment rate falls while total employment also falls.
Explain how this is possible, compare and contrast what the unemployment rate and the underutilisation rate each show, and give a reasoned judgement about which New Zealand should pay more attention to.
Explain what economists mean by full employment, and why it is not the same as zero unemployment.
New Zealand's unemployment rate falls over a year. Explain in detail why you would also need to look at the participation rate before concluding that the labour market has improved.
A government announces a target of reducing New Zealand's unemployment rate to zero.
Discuss this target. Compare and contrast the different definitions of unemployment and of full employment, and give a reasoned judgement about what target New Zealand should set instead.
Name three types of involuntary unemployment and give a New Zealand example of each.
Explain in detail the difference between cyclical and structural unemployment, and why the distinction matters for government policy.
A New Zealand region experiences a rise in unemployment at the same time as a national recession. A large local employer also closes permanently.
Compare and contrast the types of unemployment created by these two events and their impacts, and give a reasoned judgement about which the government should address first.
On the labour market model, explain what each axis shows and why the demand for labour is described as derived demand.
The New Zealand government raises the minimum wage significantly above the market equilibrium wage for low-skilled work.
Explain in detail the impact on that labour market. Refer to the labour market model in your answer.
In the same year, New Zealand experiences a fall in aggregate demand and a large increase in working-age immigration.
Compare and contrast the effect of these two events on the New Zealand labour market, and give a reasoned judgement about the overall effect on unemployment. Refer to the labour market model in your answer.
Explain how unemployment is shown on the production possibility frontier, and explain whether productive capacity has changed.
Explain in detail why an increase in government spending would reduce unemployment more effectively when the economy is deep in a recession than when it is close to full employment. Refer to the AS/AD model and the PPF in your answer.
A prolonged recession causes high unemployment in New Zealand for several years.
Compare and contrast the short-run and long-run effects of this on New Zealand's economy, using the labour market model, the AS/AD model and the production possibility frontier. Give a reasoned judgement about how urgently the government should respond.
Explain the impact of rising unemployment on the government's revenue and expenditure.
Explain in detail why unemployment is a cost to the New Zealand economy as a whole, not just to the people who are unemployed. Refer to an economic model in your answer.
Unemployment in New Zealand rises sharply, and the increase is concentrated among young workers and in one region.
Compare and contrast the impacts on young workers and on workers aged over 45 in that region, and give a reasoned judgement about which group the government should prioritise.
State the three things AS91225 requires you to do for Achieved, and name the three economic models the standard lists.
Explain in detail what it means to integrate changes shown on economic models into an explanation, and why an explanation without this cannot reach Excellence.
You are writing your AS91225 report on a period when New Zealand's unemployment rate rose.
Explain how you would structure the report to meet the Excellence criteria, and compare and contrast what distinguishes a Merit report from an Excellence one.