Chapter 3 Flashcards

1
Q

What is frictional unemployment?

A

difficulty in matching workers with jobs, perhaps due to lack of knowledge about job opportunities. Frictional unemployment is temporary.

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2
Q

What is seasonal unemployment?

A

Demand fluctuates in seasonal patters eg building, tourism, farming

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3
Q

What is structural unemployment?

A

Long term changes occur in an industry - high unemployment in region affected

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4
Q

What is technological unemployment?

A

Form of structural unemployment - old skills not needed, labour saving aspect through use of machines

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5
Q

What is cyclical unemployment?

A

Business cycle - boom, bust , recession, decline, recovery

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6
Q

What is real wage unemployment?

A

when supply exceeds demand but real wages dont fall. usually caused by strong trade unions

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