2.3 EMPLOYEMENT

Question 1

whats unemployment

Answer 1

people who are economically active but not in employment

Question 2

what does it mean to be economically inactive

Answer 2

people who aren’t looking for work due to a variety of reasons

Question 3

whats a discouraged group

Answer 3

individuals that have stopped actively seeking work due to challenges like long term unemployment or limited job opportunities

Question 4

what are some causes of unemployment

Answer 4

• technological advancements leading to job automation
• changes in consumer demand affecting industries
• structural issues in the labour market

Question 5

what is supply side unemployment

Answer 5

the unemployment causes by factors such as mismatches between the skills of job seekers and the requirements of available jobs

Question 6

what is demand side unemployment

Answer 6

unemployment resulting from insufficient demand for goods and services in the economy, leading to reduced production levels and layoffs by businesses.

Question 7

whats frictional unemployment

Answer 7

the temporary unemployment when people are in-between jobs or entering the workforce for the first time

Question 8

whats structural unemployment

Answer 8

unemployment due to occupational or geographical immobility, often occurs after structural change in the economy eg. closure of mines

Question 9

whats seasonal unemployment

Answer 9

occurs when certain industries or jobs are affected by seasonal fluctuations in demand, leading to temporary layoffs or reduced employment during specific times of the year

Question 10

real wage / classical unemployment

Answer 10

the situation where the wage rate is higher than the market equilibrium wage, leading to an excess supply of labor (unemployment) as employers are unwilling to hire at the higher wage level