Society Flashcards
Frictional unemployment
Temporary unemployment when moving between jobs
Seasonal unemployment
Caused by jobs that are only available in certain seasons
Structural unemployment
Caused by a lack of skill or experience
Technology unemployment
Capital replaces labour, subsequently raising the unemployment rate. Common in capitalism
Poorest country in the world
Central African Republic
Absolute poverty
A situation where a person lacks the necessities to sustain life to a point where it is life threatening
6 types of unemployment
Cyclical, Frictional, Hard-core, Seasonal, Structural, Technological
Workforce
Anyone who is willing and able to work
Unemployment
When someone is willing and able to work but doesn’t have a job
What percentage of Burundians live beneath the poverty line?
70%
What kind of Economy does Burundi have?
Subsistence
How long has there been a drought in Burundi?
3 years
Why are Burundian households facing food insecurity?
Declining soil fertility, climate, increasing food prices
What did the life expectancy change to between 1993 and 2000?
Declined from 51 to 44
What does GDP stand for?
Gross Domestic Product
Black market
‘Underground’ market in which goods and services are traded illegally
Economic growth
Increased production of goods and services over a period of time
Examples of needs
Warmth, shelter, food, water,
What recent event caused high unemployment worldwide?
2008 global financial crisis
What caused the 2008 GFC?
Wall Street crashed
Income inequality
The uneven distribution of income in an economy
What industry are thriving countries mainly involved in?
Tertiary (selling)
Productivity
Link between input and output in the production of goods and services
Factors affecting productivity
Specialisation, technological, organising resources, incentive, competition, education, effective management, adding capital,
Labour productivity
Relationship between output produced and hours worked
Capital productivity
Relationship between output produced and amount of capital
Benefits of increased productivity
More profitable, cheaper price, less strain on resources, promote economic growth, increase living standards
Benefits of technological advances
Increased communication with overseas firms, globalisation, proficiency, efficiency, mobility, access to information, reduce waste, costs,
How does land quantity increase?
(Fixed), discovery, imports
How does land quality increase?
Improve soil fertility
How does labour quantity increase?
Immigration, natural population growth
How does labour quality increase?
Education, on-job training, technology
How does capital quantity increase?
Increase land and labour, investing and spending on equipment
How does capital quality increase?
Research, development, invention, innovation, increased technology
How does enterprise quantity increase?
Business expansion
How does enterprise quality increase?
Training and education
What are some incentives that can increase productivity?
Bonuses, promotions, holidays
What is Australia’s unemployment rate?
6.2%
What is Australia’s youth unemployment rate?
13.6%
What happened to The Australian economy in the mid-2000s?
Mining boom
Why is structural unemployment a problem?
Schools tell students they need a plethora of degrees to succeed in life, no actual experience
What are some social effects of unemployment?
Stress, social exclusion, outcast of society, increased depression, low self-esteem
What can help lower unemployment?
High schools having programs for work experience
Monopoly
One company owns everything e.g. Buy n Large (Wall-E)
Gross
Total
Domestic
Within a country
Product
Production of goods and services
Equation for economic growth
(Year2-year1/year1) x 100
How to find GDP per capita
GDP/population
Per capita
Average per person
Benefits of economic growth
Increased employment, standard of living, wealth, output, labour, income, spending, social welfare, snowballing growth, cumulative, declined cyclical unemployment
Costs of economic growth
Inflation, environmental degradation, structural unemployment, monopolies
What do low income per capita countries have in Common?
Corrupt government, mostly primary, hot climate
What do high GDP per capita countries have in common?
Mostly tertiary industry, lack religiosity, not landlocked, 16°C, merit over clan,
What is Australia’s participation rate?
65%
What is the youth unemployment in USA?
11%
What is the U.K.’s youth unemployment rate?
14.5%
What is Germany’s youth unemployment rate?
7%
What are the common causes of youth unemployment?
Structural, hard-core, cyclical, technological
What is the difference between season affecting demand and supply?
Demand - the product is highly coveted in the season
Supply - the product is only available in a particular season
Sustainable economic growth
A maintainable rate of economic growth
How does the teenage stigma affect employment?
Employers feel teens are hooligans and do not hire them
How many people live on less than $2.50 a day?
Approximately 3 billion
What happens in corrupt countries?
They can’t collect enough taxes for the institution to escape the poverty trap
What is the clan-based system?
Choosing candidates for a job based on personal relationships rather than merit or skill, e.g. Friends and family
How does religiosity affect poverty?
Believing here and now can’t be improved, focusing on spirituality and the next world
How do richer countries see religiosity?
Try to alter destiny with hard work and talent
Where are most of the poorest countries located?
Tropical climate, tougher to live
How does tropical climate affect poverty?
More prone to disease, tsetse flies plague livestock
What is the link between geography and transport?
Poor countries are badly connected, landlocked
Why are countries rich in natural resources still poor?
Bad institutions
How much more do the 20% richest in Australia than the bottom 20%?
5 times
What is the difference in wealth equality between the 20% richest and poorest 20% in Australia?
70 times
What affects the poorest in terms of job opportunities?
They can’t develop their skills
What’s happening to the gap between rich and poor?
Widening
How much of the world’s wealth does the richest 20% own?
94%
How much wealth does the richest 2% have?
More than half of the rest of the world
What is the world’s total wealth?
$223 trillion
How much of the world’s wealth does the poorest 20% own?
0.5%
How much of the world’s wealth does the poorest 40% own?
1%
How much of the world’s wealth has the top 1% accumulated?
43%
How much does the amount of wealth of the 300 richest equate to?
The poorest 3 billion
How much richer were the wealthiest countries 200 years ago?
3 times
How much richer were the wealthiest countries than the poorest after colonialism?
35 times
How much richer are the wealthiest countries today?
80 times
How much do rich countries take from poor countries each year?
$2 trillion
Why do the poor get poorer despite rich countries giving them aid?
Tax avoidance, trade mispricing, paid-off loans, trade rules
What are trade rules for?
Acces to cheaper labour and more resources
What are the 10 poorest countries?
Central African Republic, Republic of Congo, Malawi, Burundi, Liberia, Niger, Mozambique, Eritrea, Guinea, Togo
Poverty line
Minimum standard of living
What causes global absolute poverty?
Geographical factor, government instability, corruption, debt, overpopulation, clan mentality, poor trade routes, institution, disease, pests, culture, transportation systems,
What is the effect of global absolute poverty?
Income inequality, death, lack access to health/clean water, unable to increase wealth, lack opportunity to progress,
Relative poverty
a situation where people live below the poverty line, the lowest income earners in the economy
what are ways of measuring poverty?
GDP/per capita, wealth, access to education/health, birth rate, life expectancy, cause of death, infant mortality rate, poverty line, perty/business ownership,
Wealth inequality
Uneven distribution of assets
Poverty
Having little money or goods
Money
A media of exchange for goods and services
What were the Millennium Summit group aiming to do?
Gender equality, combat malaria/AIDS etc., reduce infant mortality, improve maternal health, primary education, protect the environment
Which Millennium goal is likely to be the only to succeed by 2015?
Halve poverty
Due to poverty reduction efforts in China and India, how many people will be in the ‘living on a dollar a day’ category?
From 28 to 12%, half billion out
What are some of the world’s richest countries?
Qatar, Switzerland, Luxembourg, USA, Australia, France
What are some causes of poverty in Australia?
Lack of education, age, rural, minorities, unemployed
How is productivity measured?
Output per unit of time (hours)
Productivity
The relationship between input of work and output produced
What is the sustainable economic growth rate?
3-4%
What happens if economic growth is too fast?
Price inflation
What is the current economic growth trend?
2-2.5%
Causes of unemployment in Australia?
Frictional, structural, cyclical
Aggregate
Total
What are the planes of the economic growth PPC?
Price, output
