Unemployment Flashcards
1
Q
Governments want full employment. Define full employment
A
where everybody of working age [excluding students, retirees ,etc] who wants to work can find employment at the current wage rates
2
Q
does full employment mean everyone has a job and why
A
no because in most economies there will always be people between jobs
3
Q
why do governments want full employment [2 reasons]
A
- maximise production - raise standards of living in a country
4
Q
if there’s unemployment in an economy then it won’t be operating at full capacity, so it’ll be represented by a point within what curve
A
the PPF curve
