LS9- Employment

Question 1

Frictional unemployment

Answer 1

Short term unemployment caused by workers leaving one job for another

Question 2

Seasonal unemployment

Answer 2

Some workers tend to work on a seasonal bias- unemployment levels fluctuate between seasons- ex workers in the tourism industry will mostly only be working in certain seasons

Question 3

Structural unemployment

Answer 3

Workers are willing to work but lack the appropriate skills needed to occupy these positions (occupational immobility) or they are unwilling to move to the location where the job exists despite being willing to work at that wage rate (geographical immobility)

Question 4

Cyclical unemployment

Answer 4

Unemployment that occurs when there is a recession- insufficient AD in the economy for everyone to have a job

Question 5

Real wage unemployment

Answer 5

Some unemployed people might be willing to work for less than minimum wage, but firms aren’t allowed to pay workers less than minimum wage, so they will remain unemployed
Others won’t look for a wage, as they receive more from unemployment benefits than from an actual job

Question 6

Four key ways in which globalisation has been taking place

Answer 6

Proportion of output of an individual national economy which is traded internationally is growing

There is ever increasing ownership of physical and financial assets, such as companies or shares or loans in one country by economic actors in another country

Individuals are migrating in increasing numbers between countries

Technology is being shared between countries on a faster basis

Question 7

Governments four major macroeconomic objectives

Answer 7

Low unemployment, achieving full employment

Low and stable inflation, avoid in deflation

Economic growth on par with similar economies

Balance of payments equilibrium, including equilibrium on the current account