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Economics > 3.2.2 > Flashcards

3.2.2 Flashcards

1
Q

What is unemployment?

A

Members of the labour force that are willing and able to work and seeking employment.

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2
Q

What is employment?

A

Employment is the measure of labour available to work that are in work.

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3
Q

What is voluntary unemployment?

A

A person out of a job because of their own desire.

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4
Q

What is involuntary unemployment?

A

A person who is separated from work and wages even though they are capable of doing so.

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5
Q

What is structural unemployment?

A

Unemployment because the job no longer exists so they have no useful skills.

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6
Q

What is frictional unemployment?

A

Unemployment where you are in between jobs.

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7
Q

What is seasonal unemployment?

A

Unemployment due to changes in the season e.g. skiing instructor.

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8
Q

What is cyclical unemployment?

A

Unemployment due to changes in the economy such as a recession.

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9
Q

What is technological unemployment?

A

Unemployment due to changes in the labour force and automation.

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10
Q

What is being fired?

A

Where you are dismissed from consistently underperforming or doing an act of gross misconduct.

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11
Q

What is being made redundant?

A

It is being dismissed due to the firms fault as their job is no longer required.

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12
Q

What are costs to the business of laying off people?

A

Paying redundancy, workers being demotivated as they will think it can happen to them, businesses being left with capacity and small demand as people have less disposable income.

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13
Q

What are the costs to the economy for being laid off?

A

Unemployment doesn’t help production, waste of resources, tax revenues fall, less public sector spending, increased welfare spending, increase of borrowing due to increase in welfare spending and less tax revenues.

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14
Q

What are costs to the community for laying people off?

A

If unemployment is high, community spirit is lower, increased rate of crime, less disposable income so areas become run down, affecting the look of the community meaning housing prices fall.

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15
Q

What are the benefits for laying people off?

A

Frictional unemployment is normal, workers move to more technologically advanced jobs, wage rates are kept down with more employment.

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16
Q

What is inflation?

A

A general increase in prices and fall in purchasing power of money.

17
Q

What is rate of inflation?

A

The measurements of price changes-usually over a year.

18
Q

What is deflation?

A

The fall in price levels.

19
Q

What is disinflation?

A

When prices are still rising but at a lower rate.

20
Q

What is CPI?

A

Consumer price index-compares current prices of a basket of goods and services to the same basket a year previously.

21
Q

What is cost push inflation?

A

Prices rising due to an increase in a firms cost.

22
Q

What is demand pull inflation?

A

When prices rise due to an increase in consumer demand.

23
Q

What is the relationship between interest rates and inflation?

A

Increase in interest-slower inflation, decrease in interest-faster inflation.

24
Q

What is the current account?

A

The account that records the invisible and visible trades of a country as well as government aid payments.

25
Q

What is current account deficit?

A

It is when there are more imports than exports.

26
Q

What is current account surplus?

A

When there are more exports than imports.

27
Q

What is the current balance?

A

The difference between imports and exports.

28
Q

What is absolute poverty?

A

According to the UN, it is people surviving on less than $2.15 a day so they can only afford essentials.

29
Q

What is income inequality?

A

Differences that exist due to the differences in income in society.

30
Q

What is relative poverty?

A

Living below the average standards of an induvidual.

31
Q

What is underpopulation?

A

Where there can be a population increase without a reduction in living standards.

32
Q

What is wealth?

A

Your collection of assets.

33
Q

What is wealth inequality?

A

The unequal distribution of assets in an economy.

34
Q

What are the main reasons of why we would reduce inequality?

A

To meet basic needs, to raise living standards and for other ethical reasons.

35
Q

How can we reduce inequality?

A

Through education which takes a long time and healthcare, due to an increase in available workers.

Economics (9 decks)

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