Spain has had one of the highest unemployment rates in Europe. Moreover, 3.5 million of those unemployed had been out of work for at least a year by 2015. The Spanish Government has introduced a range of policy measures, including increased government spending, to reduce unemployment and poverty. It has also tried to help firms make the supply of their products more elastic.

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

1. [1] (a) lack of information on jobs available
2. [1] (a) lack of vacancies/low demand for labour
3. [1] (a) lack of skills/qualifications /experience/occupational mobility
4. [1] (a) lack of geographical mobility
5. [1] (a) possible age/gender/race/disability discrimination
6. [1] (b) loss of income
7. [1] (b) reduced ability to get a job
8. [1] (b) reduced confidence/self-worth
9. [1] (b) decline in health
10. [1] (b) reduced ability to educate children
11. [1] (b) loss of skills
12. [1] (b) the unemployed may receive unemployment benefits which are usually lower than wages or may receive no income/may experience poverty
13. [1] (b) will lose out on training by not keeping up with advances in technology
14. [1] (b) unemployment reduces confidence which makes it harder for someone to get another job
15. [1] (b) unemployment can lead to mental health problems/may increase physical illness due to less nutritious diet and poor housing
16. [1] (b) lower income may mean children of the unemployed will receive less education which will reduce their chances of getting a job
17. [1] (c) Products which can be produced quickly
18. [1] (c) will have elastic supply
19. [1] (c) Products which can be stored/non-perishable
20. [1] (c) will have elastic supply
21. [1] (c) Products which are made with raw materials in short supply
22. [1] (c) will have inelastic supply
23. [1] (c) Products made by firms with spare capacity/mobile resources/have a low cost of altering production/low cost of attracting resources into the industry
24. [1] (c) may have elastic supply
25. [1] (d) Increased government spending on benefits
26. [1] (d) will enable the poor to purchase basic necessities
27. [1] (d) Increased government spending on education
28. [1] (d) will increase skills
29. [1] (d) increasing employment
30. [1] (d) raising wages
31. [1] (d) Increased government spending may increase total demand
32. [1] (d) may raise GDP per head
33. [1] (d) Increased government spending on healthcare
34. [1] (d) may keep people healthier
35. [1] (d) increasing their ability to earn income
36. [1] (d) Increased government spending on infrastructure
37. [1] (d) will create jobs
38. [1] (d) increase income
39. [1] (d) Increased government spending may cause inflation
40. [1] (d) reduce ability of poor to purchase basic necessities
41. [1] (d) Increased government spending on benefits may increase reliance on benefits
42. [1] (d) which in the long term may reduce a person's earning potential
43. [1] (d) Increased government spending may be financed by higher taxation
44. [1] (d) not increasing total demand
45. [1] (d) Increased government spending on education may not improve the quality of education
46. [1] (d) may be in wrong areas