II. For each question 1-4, mark one for the answer you choose.

1. According to some economists involuntary unemployment takes place when workers

A. choose to work at the equilibrium wage but can’t find a job.

B. can’t accept work at the current wage.

C. are encouraged by their unions to resign because of low wage.

2. One of the extreme viewpoints on unemployment is that

A. any unemployment can be classified voluntary and involuntary at the same time.

B. all unemployment can be considered as involuntary.

C. in cases workers make their own decisions if to accept work or not.

3. Some economists claim that

A. changes in demand can lead to involuntary unemployment.

B. retraining of people cause voluntary unemployment.

C. if people are initially poorly informed of job opportunities and become unemployed, they are sure to have done it voluntarily.

4. It is stated that the difference between “voluntary” and “involuntary” unemployment

A. is subtle.

B. is obvious.

C. is senseless.

III. Choose the best answer to complete each gap in the text.

Structural unemployment is ___ (1) the structure of the economy changes. Employment in some industries may ___ (2) while in others it contracts. There are two main reasons ___ (3) this.

A change in the pattern of demand. Some industries ___ (4) declining demand. This may be ___ (5) to a change in consumer tastes. Certain goods may go ___ (6) fashion. Or it may ___ (7) competition from other industries. For example, consumer demand may ___ (8) from coal and to other fuels.

A change in the methods of production. New techniques of production often allow the ___ (9) level of output to be produced with fewer workers. Unless output expands sufficiently to absorb the surplus labour, people will be ___ (10) redundant.

1. a) there	b) what	c) where	d) how
2. a) expand	b) extend	c) decrease	d) reduce
3. a) for	b) of	c) to	d) in
4 a) practice	b) undertake	c) take up	d) experience
5. a) thank	b) through	c) due	d) because
6. a) out of	b) away from	c) out from	d) of
7. a) result in	b) be caused by	c) be called by	d) be result from
8. a) be carried	b) shift away	c) be turned down	d) reject away
9. a) similar	b) compatibl	c) equal	d) same
10. a) done	b) held	c) dismissed	d) made

IV. In most of the lines below there is one extra word. It is either grammatically incorrect or does not fit in with the sense of the text. Some lines, however, are correct. If there is an extra word in the line, write out the extra word in CAPITAL LETTERS.

01. There are two broad approaches to the tackling structural unemployment:

02. market-orientated or interventionist.

03. The first one involves encouraging people to look more active for jobs,

if necessary in

04. the other parts of the country, involves encouraging people to adopt

05. a more willing attitude on retraining, and if necessary

06. to accept some reduction in wages.

07. An interventionist approach involves direct government action to match jobs

to the unemployed.

08. Two examples are providing grants to firms to set back in areas

09. of high unemployment (regional policy),

10. and government-funded trained schemes.