Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is a method that governments may use to control unemployment?

1. Restricting job openings to specific individuals

2. Offering grants to enhance job skills training

3. Reducing economic growth initiatives

4. Limiting private sector expansion

The correct answer is: Offering grants to enhance job skills training

Offering grants to enhance job skills training is a method that governments commonly utilize to control unemployment. By providing financial support for job skills training, governments can help individuals gain the necessary skills to meet the demands of the labor market. This proactive approach not only increases the employability of the workforce but also helps align the skills of workers with the needs of employers. Consequently, as individuals become more skilled, they are more likely to find employment, thus reducing overall unemployment rates. In contrast, restricting job openings to specific individuals tends to create barriers for many potential job seekers, which can exacerbate unemployment rather than alleviate it. Reducing economic growth initiatives could lead to fewer jobs being created, worsening the unemployment situation. Additionally, limiting private sector expansion can hamper job creation, as the private sector often drives employment growth through business expansion and innovation. Ultimately, enhancing job skills through targeted grants provides a constructive pathway to reduce unemployment effectively.