chapter 13 for test

Question 1

types of unemployment

Answer 1

frictional
seasonal
cyclical
structural
institutional

Question 2

unemployment

Answer 2

all those seeking work at existing wage rates but unable to find work

Question 3

frictional unemployment

Answer 3

those who are between jobs and looking for work
arises because of changes in markets, or when people tastes/preferences change and thus alter demand for products
this has a knock on effect in the demand for labour
usually short term

Question 4

seasonal unemployment

Answer 4

some members of the workforce are only in employment for part of the year
demand for some labour moves in line with the seasonality of the work

Question 5

cyclical unemployment

Answer 5

results from reduced demand for goods/services during an economic recession
fluctuations in the trade cycle
should return to work in recovery phase

Question 6

structural unemployment

Answer 6

become unemployed because their skills are no longer in demand due to technical progress or competition
can occur when an industry goes into decline because of changing demand
workers often have industry specific skills, making it difficult to find other work

Question 7

institutional unemployment

Answer 7

obstacles are preventing the mobility of labour eg lack of housing in another region or refusal of foreign gov to grant work permits

Question 8

economic effects of unemployment

Answer 8

decrease in consumer demand
deflation
increase in expenditure on social welfare
decline in tax receipts

Question 9

strategies for reducing unemployment

Answer 9

encourage entrepreneurship
decrease taxation
sustain a low corp tax
subsidise additional labour

Question 10

the live register

Answer 10

used to provide monthly series of the number of people registering for job seekers benefit and job seeker allowance or other statutory benefits at the dept. of social protection
does NOT measure unemployment