15
QuizMultiple Choice

Economic Systems and Daily Life — Quiz

Question 15 • Economics

What is one possible effect of high unemployment in a mixed market economy?

Answer
A
The government will intervene to appoint new jobs to workers.
B
New government-run farms and factories will open to provide work.
C
A lack of income will weaken the buying power for many people.
D
The wealth gap between the upper and lower classes will decrease.

Explanation

When many people are unemployed, they lose wages and have less money to spend. This reduces their buying power and can also lower demand for goods and services. Therefore, the possible effect is that a lack of income will weaken the buying power for many people.

AI-written and checked against the verified answer.

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