Read the following passage and answer the questions below:

Unemployment represents the waste of resources. The goods and services which the unemployed might have produced are lost forever. Producing more in the future cannot make up for the output
which could have been produced if the unemployed had been working Unemployment has serious social effects People who lose their jobs suffer fall in their standard of living and so do their dependents. Unemployment can have damaging effects on the morale of those out work, can be made to fell rejected and unwanted. There is also a loss of skill; workers who are unemployed for long period of time may find it difficult to retain their skills. One cost of unemployment takes the form of the taxation that isnecessary to provide the money to pay social security benefits to those who are out of  work. If the level of unemployment could be reduced, this money might be spent on schools, hospitals, roads and so on. Alternatively, taxation might be reduced.