measures of economic performances 2.1.3-2.1.4

Question 1

define employment

Answer 1

thw amount of people that are in work and are earning an income

Question 2

define unemployment

Answer 2

the amount of people that are jobless but want to work and are actively seeking employment (willing and able)

Question 3

what are the 2 measures of unemployment

Answer 3

claimant count and ILO

Question 4

what is the claimant count

Answer 4

those out of work and claiming unemployment benefit

Question 5

what are the advantages of the claimant count

Answer 5

.data is easy to obtain
.no cost in collecting data
.updated monthly so ut is always current

Question 6

what are the disadvantages of the claimant count

Answer 6

.can be manipulated by the government to make it seem smaller
.it excludes the people who are looking for work but aren’t eligible to claim JSA

Question 7

what is the ILO

Answer 7

International Labour Organisation anf the uk labour force survey

Question 8

what are the advantages of the UK Labour Force Survey

Answer 8

.thought to be more accurate than Claimant Count
.its an internationally agreed measure of unemployment
.so it is easier to make comparisons with other countries

Question 9

what are the disadvantages of the UK Labour Force Survey

Answer 9

.less up to date than claimant count because of the way that data is collected
.expensive to collect and put together
.Unrepresentative sample making the data inaccurate

Question 10

which figure of the UK LFS or the Claimant Count is higher and why?

Answer 10

LSF tends to be higher because in the claimant count certain groups are excluded

Question 11

what are the reasons the government want to keep a track of unemployment figures

Answer 11

.High rate suggests economy is doing bad
.leads to lower income and less spending and this impacts companies
.means theres unused labour in the economy so fewer goods and services can be produced
.means gov has extra costs such as welfare benefits and has less revenue as less tax is paid

Question 12

define underemployment

Answer 12

being in paid work but either:
.being in a job where you are overqualified to work in
.being employed for less hours than u like

Question 13

define economically inactive

Answer 13

people that arent in employment and who are not seeking work within the last 4 weeks and/or are unable to start work within the next 2 weeks

Question 14

why may unemployment and employment rise together

Answer 14

migration

Question 15

what are the limitations of unemployment/employment figures

Answer 15

.dont tell us what type of people are looking
.they could be students wanting a few hours of a part time job
.could be immigrants
.dont tell us how much people in work are earning

Question 16

what does an increase in migration cause

Answer 16

increased migration = more workers = increased labour resources = increased amount of products = increased supply = decreased inflation

Question 17

Why does unemployment have an impact on companies

Answer 17

Because unemployment means less income and less spending which means there are less sales for companies which could mean they have to cut costs and then that causes them to have less profit

Question 18

What is the balance of payments

Answer 18

It refers to the international flow of money, how money comes in and goes out of a country

Question 19

What does the balance of payment record

Answer 19

The flow of money out of a country ( pay for imported goods) and the flow of money into a country (pays for exported goods)

Question 20

Is the value or volume recorded for balance of payments

Answer 20

Its the value not the volume

Question 21

How many sections are there to the current account

Answer 21

4

Question 22

What are the 4 sections for the current accounts

Answer 22

.trades in goods (visible trade)
.trades in services (invisible trade)
.International flow of income
.transfer of money from one person or gov to another

Question 23

Is the balance of payments always balanced

Answer 23

No it isn’t always balanced

Question 24

How is the balance of payments not always balanced

Answer 24

The flow of money coming into a country may not balance the flow of money out

Question 25

When js there a surplus in terms of balance of payments

Answer 25

When the money flowing in, exceeds the money flowing out

Question 26

When is there a deficit in terms of balance of payments

Answer 26

When the money flowing out exceeded the money flowing in

Question 27

Has the UK had a surplus or deficit in recent years

Answer 27

Deficit

Question 28

Where does the UK have deficit in and where does it have a surplus in

Answer 28

Surplus in invisible trade, deficit in visible trade

Question 29

What may deficit be a sign of

Answer 29

It might be a sign that a country is uncompetitive

Question 30

Why may the government want to avoid a long term deficit

Answer 30

As it could create even bigger issues such as job losses