Th2.1: Unemployment Impacts on Society Flashcards
1
Q
What is rising unemployment linked to?
A
social deprivation
2
Q
What does social deprivation mean?
A
increase divorce rates, worsening health and lower life expectancy
3
Q
Areas of high unemployment often see a fall in demand for local goods and services, which would then lead to…
A
a fall in income for those working in the services and sometimes further loss of jobs
4
Q
What would happen if people chose to leave the labour market permanently?
A
negative effect on LRAS and therefore damage the economy’s growth potential so the country is unable to achieve their desired PPF
5
Q
It results in a loss of….. and represents….
A
potential national output
inefficient use of scarce resources
6
Q
What will taxpayers paying money to the unemployed do?
A
lead to a fall in national output
