chap 6 Flashcards
labor force?
everyone age 16 and older who is working for pay or actively seeking paid employment
- only those who are employed or actively seeking work are counted as part of the labor force
labor force participation rate?
percentage of the working-age population working or seeking employment
production possibilities
alternative combinations of final goods and services that could be produced in a given time period with all avaliable resources and technology
what is okun’s law?
each additional 1% of unemployment results in 2% less output
unemployment rate?
proportion of the labor force that is unemployed
What is the formula to find unemployment rate?
Number of unemployed people divided by LAbor Force
discouraged worker
an individual who isnt actively seeking employment but would look for or accept a job if one were avaliable
Under employment
people seeking full-time paid employment who work only part time or a re employed at jobs well below skill level
- have an MBA in finance but working full time at burger king
What are the 4 socio economic costs of unemployment
Lost income, lives, confidence, and social stress
what are the 4 types of unemployment?
seasonal, cyclical, structural, and frictional
What is seasonal unemployment?
unemployment due to seasonal changes ine mployment or labor supply
- things such as growing crops, building houses, or go skiing certin areas
What is cyclical unemployment?
joblessness that occurs when there simply aren’t enough jobs to go around
- occurs when number of workers demanded falls short of number os persons supplied
- numbers of chairs is less than # of players
What is structural unemployment?
unemployment caused by a mismatch between skills (or location) of job seekers and the requirements (or location) of avaliable jobs
What is frictional unemployment?
brief periods of unemployment experienced by people moving between jobs or into the labor market
Inflationary flashpoint
level of output that would trigger to much inflation
