causes and costs of unemployment

Question 1

what are the general costs of unemployment

Answer 1

inefficient use of resources
loss of income for unemployed
less tax revenue, higher goerment borrowing
loss of human capital
social problems/alienation

Question 2

what are personal costs of unemployment

Answer 2

loss of earnings - poverty
potential homelessness
harms fututre prospects
loss of human capital
affects confidence

Question 3

costs of unemployment to government

Answer 3

fall in tax revenue
more welfare payments

Question 4

costs of unemployment to society

Answer 4

lower GDP for the economy
economy openating below its full capacity/inefficient
lower spending and lower output
higher crime rates

Question 5

what are the supply side causes of unemployment

Answer 5

-frictional
-structural missmatch of skills
-geographical immobility
-real wage unemployment
-technological change

Question 6

demand deficient causes of unemployment

Answer 6

-high interest rates
-global recession
-negative multiplier effect
-financial crisis