Unemployement

Question 1

Causes of unemployment

Answer 1

FRICTIONAL UNEMPLOYMENT
SEASONAL UNEMPLOYMENT
CYCLICAL UNEMPLOYMENT
STRUCTURAL UNEMPLOYMENT
REAL WAGE (CLASSICAL) UNEMPLOYMENT

Question 2

FRICTIONAL UNEMPLOYMENT

Answer 2

Unemployment that occurs when a worker is changing jobs or has resigned in order to search for a new job.

Question 3

SEASONAL UNEMPLOYMENT

Answer 3

Unemployment that occurs at certain times of the year.

Question 4

CYCLICAL UNEMPLOYMENT

Answer 4

Unemployment due to a lack of demand for labour during the downswing of the business cycle.

Question 5

STRUCTURAL UNEMPLOYMENT

Answer 5

Unemployment caused by a mismatch between the skills the employers require and the skills that employees offer.

Question 6

REAL WAGE (CLASSICAL) UNEMPLOYMENT

Answer 6

Unemployment caused by wages being set above the market equilibrium

Question 7

labour absorption rate

Answer 7

It is the proportion of the working-age population aged 15-65 years that is employed.
Calculated as: working age population employed / total population

Question 8

Economic costs of unemployemnt

Answer 8

Loss in production
Business pressures
Fiscal costs to the government
Loss of investmentin human capital

Question 9

Social costs of unemployment

Answer 9

Social and family pressures
Increase in poverty and income quality
Community demographics
Community fears and pressures