Employment & Unemployment (Broad)

Question 1

List four types of unemployment

Answer 1

Frictional unemployment, seasonal unemployment, cyclical unemployment, institutional unemployment.

Question 2

List four causes of unemployment

Answer 2

Economic recession, relocation of industry, uncertainty about the future, systemic crisis.

Question 3

List four impacts of unemployment on the economy

Answer 3

A decrease in consumer demand, an increase in gov. current expenditure on social welfare, an increase in social problems, reduced demand for imports.

Question 4

List four strategies for reducing unemployment in Ireland

Answer 4

Sustain a low rate of corporation tax, encouraging new investment opportunities, invest in education and training, encourage the consumption of Irish goods.

Question 5

Explain the term underemployment and give a definition

Answer 5

Underemployment is a situation whereby a factor of production, though not actually employed, is working below capacity. Example: a PhD graduate working as a waiter.

Question 6

Explain the term ‘full employment’

Answer 6

Full employment exists when everybody seeking work is employed at existing wage rates.

Question 7

Explain the term ‘unemployment’

Answer 7

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