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Given that Mary's husband John is unemployed, she is interested in finding out how the economy is doing - Junior Cycle Business Studies - Question c - 2019
Question c
Given that Mary's husband John is unemployed, she is interested in finding out how the economy is doing. On the graph below, the economic indicators for unemployment... show full transcript
Worked Solution & Example Answer:Given that Mary's husband John is unemployed, she is interested in finding out how the economy is doing - Junior Cycle Business Studies - Question c - 2019
Step 1
Step 2
Explain the impact of the above trend in unemployment on individuals like John and on the economy.
Answer
Impact on individuals: Earning a regular income will help individuals like John to pay bills. With more disposable income, individuals like John can afford to buy luxury goods, enhancing their quality of life. It may also be easier for individuals like John to find a job, which will improve their standard of living.
Impact on the economy: There will be an increase in tax revenue for the government, as more employed individuals contribute to taxes. Furthermore, the government will spend less on social welfare payments for the unemployed, allowing for reallocation into other essential services or infrastructure. This could enable increased funding for capital spending by the government.