Macro economic objectives - Employment

Question 1

what is employment defined

Answer 1

use of labour in the economy to produce GaS

Question 2

what is unemployment

Answer 2

workers who are willing and able to work at current wage level and are unable to find a job

Question 3

Who actually counts towards unemployment (acco vs inacco?)

Answer 3

people part of labour force that are not currently in work.

NOT people like pensioners and full time students because they are inactive

Question 4

What is the difference between unemployment level and rate

Answer 4

level looks at number of people unemployed in working pop

whereas

rate looks at the percentage of people unemployed in working pop

Question 5

how do we measure unemployment (2 possibilities)

Answer 5

using the claimant count - however many people claim unemployment benefits
the labour force survey - much more accurate of people looking for work in recent weeks

Question 6

what are the 4 types of unemployment

Answer 6

seasonal - fall in demand during certain seasons
structural - long term fall in demand of industry
frictional - transitional between jobs
cyclical - lack of demand in economy

Question 7

Which two types of unemployment are dangerous

Answer 7

structural and cyclical

Question 8

why is structural unemployment dangerous to the economy

Answer 8

is a long-term type of unemployment + leads to occupational and geographical immobility

Question 9

why is cyclical unemployment dangerous to the economy

Answer 9

could lead to a vicious cycle where demand keeps spiraling downwards

Question 10

what is underemployment (2 types)

Answer 10

1 individual is over qualified because they can’t find good enough work
2. individual cannot find full time so does part time