Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is NOT a consequence of unemployment?

1. Social costs

2. Increased welfare payments

3. Enhanced community participation

4. Loss of output

The correct answer is: Enhanced community participation

Enhanced community participation is not typically considered a consequence of unemployment. In fact, unemployment often leads to social isolation and decreased community engagement. When individuals are out of work, they may feel disheartened, lose their sense of purpose, and withdraw from social activities. In contrast, the other options present clear negative consequences associated with unemployment. Social costs can rise due to increased crime rates or mental health issues linked to unemployment. Increased welfare payments occur as more individuals rely on state support when they lack jobs. The loss of output refers to the economic impact of having a portion of the workforce not contributing to production, which can hinder overall economic growth and efficiency. These factors exacerbate the problems caused by unemployment, making them significant issues for both individuals and society as a whole.