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Unemployment · Part 1 of 3
6 exam-style questions with model answers, plus 9 quick multi-choice questions — every question on this part of the standard, grouped by the 2 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
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.