Lesson 50 - unit 10 Flashcards
What does the level of employment in an economy indicate?
How well the productive resources of an economy are being used.
What is frictional unemployment?
When people have not had time to find a job.
What is structural unemployment?
When there is a mismatch between the skills people have and the skills employers need.
What is seasonal unemployment?
When people are unemployed after an especially busy season and have been let go.
What is cyclical unemployment?
Unemployment as a result of downturns in the business cycle.
What is classical unemployment?
Unemployment as a result of wages being above equilibrium.
How is the rate of unemployment calculated?
The number of people who want to work divided by the total labor force.
What is the generally accepted range of the natural rate of unemployment?
1% - 5%
What is underemployment?
When people are working at jobs beneath their skill level or people who are working part time instead of full time, because it’s all they can find.
What is meant by discouraged workers?
People who have not been able to find work and who stopped actively looking.
