5
QuizMultiple Choice

Economic Systems and Daily Life — Quiz

Question 5 • Economics

How does a high unemployment rate affect the economy?

Answer
A
A high unemployment rate has no effect.
B
A high unemployment rate has a very negative effect.
C
A high unemployment rate has a very positive effect.
D
A high unemployment rate has little effect.

Explanation

When many people are unemployed, fewer workers are producing goods and services, and households have less income to spend. This reduces overall economic output and can weaken businesses, so a high unemployment rate has a very negative effect.

AI-written and checked against the verified answer.

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