2.3-Employment Flashcards
What is the definition of employment?
Employment refers to the state of having paid work.
What is the unemployment rate?
The unemployment rate is the percentage of the labor force that is unemployed.
True or False: Full employment means that everyone has a job.
False: Full employment refers to the level of employment where all who are willing and able to work are employed, excluding frictional and structural unemployment.
What are the three main types of unemployment?
Frictional, structural, and cyclical unemployment.
Fill in the blank: _______ unemployment occurs when workers are temporarily between jobs.
Frictional
What is structural unemployment?
Structural unemployment occurs when there is a mismatch between the skills of workers and the requirements of jobs.
What does cyclical unemployment depend on?
Cyclical unemployment depends on the economic cycle, increasing during recessions and decreasing during expansions.
True or False: The labor force includes those who are not seeking employment.
False: The labor force includes all individuals who are either employed or actively seeking employment.
What is the natural rate of unemployment?
The natural rate of unemployment is the level of unemployment that persists in an efficient economy when labor and resource markets are in equilibrium.
What does the term ‘underemployment’ refer to?
Underemployment refers to individuals who are working in jobs that do not fully utilize their skills or are working part-time when they desire full-time work.
What is the difference between seasonal and cyclical unemployment?
Seasonal unemployment occurs due to changes in the season, while cyclical unemployment is related to the economic cycle.
Fill in the blank: The _______ rate measures the proportion of the working-age population that is in the labor force.
participation
What is the significance of the labor force participation rate?
The labor force participation rate indicates the active portion of an economy’s labor force.
What is the impact of minimum wage laws on employment?
Minimum wage laws can lead to higher wages but may also result in reduced employment opportunities for low-skilled workers.
True or False: Job creation is solely the responsibility of the government.
False: Job creation is influenced by both government policies and private sector initiatives.
What role does education play in employment levels?
Higher levels of education typically lead to lower unemployment rates and higher wages.
What is a labor market?
A labor market is the supply and demand for labor, where employers seek to hire and workers seek employment.
Fill in the blank: _______ policies aim to reduce unemployment by stimulating economic activity.
Expansionary
What is the effect of automation on employment?
Automation can lead to job displacement in certain sectors while creating new opportunities in others.
What is a skills gap?
A skills gap occurs when there is a difference between the skills that employers need and the skills that workers possess.
True or False: Economic growth always leads to a decrease in unemployment.
False: While economic growth can reduce unemployment, it does not guarantee it due to various factors.
What are labor unions?
Labor unions are organizations that represent workers in negotiations with employers regarding wages, benefits, and working conditions.
What is job polarization?
Job polarization refers to the phenomenon where employment opportunities grow in high-skill and low-skill jobs, while middle-skill jobs decline.
Fill in the blank: _______ policies are designed to enhance the skills of workers.
Training
