What is a benefit of a low unemployment rate in a country?

Study for the Leaving Certificate Geography Test. Gain insight with scenarios and multiple choice questions. Equip yourself with exam-ready knowledge!

A low unemployment rate is often associated with a robust economy where more people are employed and contributing to the workforce. This leads to an increase in disposable income among households, resulting in greater consumer spending. As more people are earning wages, the government also sees a rise in tax revenues, since employed individuals pay income tax and consumption taxes on their purchases.

The additional tax revenue generated can be allocated towards various public services and infrastructure projects, such as building roads, schools, and hospitals. This investment in infrastructure can further stimulate economic growth by improving the overall efficiency and connectivity within the country. Therefore, option B accurately reflects a significant benefit of a low unemployment rate: it enhances government financial resources available for public investment.

In contrast, the other options suggest outcomes that are typically not associated with low unemployment. For instance, lower consumer confidence, higher crime rates, and decreased public spending would generally occur in scenarios of economic distress rather than in a thriving job market.

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