Unemployment

Question 1

Unemployment occurs…

Answer 1

when people who are willing and able to work can’t find job

Question 2

economically inactive

Answer 2

children, student, retired, disabled

Question 3

labor force

Answer 3

Total number of workers who are available for work

Question 4

factors what cause unemployment

Answer 4

1. demographics
2. social and cultural factors
3. school leaving age
4. retirement age
5. proportion of women who join the labor force.

Question 5

unemployment rate formula

Answer 5

number of unemployed / number of labor force x100

Question 6

does a person who doesn’t look for job considered as labor force?

Answer 6

No

Question 7

what are the difference between stock and flow?

Answer 7

stock is measured at particular time while flow is measured overtime

Question 8

Are graduates who just left their universities considered unemployed?

Answer 8

Yes, the rate will increase

Question 9

When machinery replaces people’s jobs, does unemployment increase?

Answer 9

Yes

Question 10

When people voluntarily left job, does unemployment increase?

Answer 10

Yes

Question 11

If people become ill, does unemployment increase?

Answer 11

No, the labor force decreased

Question 12

What is claimant count

Answer 12

The measure of unemployment those who register as unemployed to claim unemployment benefits.

Question 13

what is the downside of claimant count

Answer 13

the amount is likely to be overstated or understated due to greed or lack of connection to conduct the survey

Question 14

What is the labor force survey?

Answer 14

Department of Statistics

Question 15

What is the downside of labor force survey

Answer 15

Sampling error

Question 16

What are the 2 main causes of unemployment?

Answer 16

1. Lack of job opportunities
2. substandard education

Question 17

What are the 2 causes of lack of job opportunities?

Answer 17

1. Lack of startups
2. Absence of vocational training

Question 18

What there are lack of startups?

Answer 18

1. Government support
2. Law and Order situation (cigarettes and vape)

Question 19

What are the 3 main reasons of substandard education?

Answer 19

1. incapable teachers
2. unaffordable education
3. improper hiring

Question 20

What are the 3 types of unemployment?

Answer 20

1. frictional unemployment
2. structural unemployment
3. cyclical unemployment

Question 21

explain cyclical unemployment

Answer 21

due to decrease in AD probably cause by global threats like COVID-19

Question 22

explain structural unemployment

Answer 22

Due to changes in the country’s structure.
1. The focus of the country changes
2. Decline in the economy
3. Changes in how things are done (online) - technology improves

Question 23

Frictional unemployment (casual and seasonal also included in this)

Answer 23

Due to voluntary unemployment, graduates don’t want to accept their first job. They spend time transitioning from one job to another without contributing to the economy.

Question 24

Casual unemployment

Answer 24

Work by contracts for few months and rest before the next one

Question 25

Seasonal unemployment

Answer 25

Fishermen don’t anything during monsoon

Question 26

4 consequences of unemployment (-ve)

Answer 26

1. decrease in population
2. Social disturbance
3. Individual skills become dull causing them to have low self-esteem
4. Low savings lead to poverty

Question 27

Consequences of unemployment (+ve)

Answer 27

1. The firm might benefit from a wide choice of potential workers who don’t request a high salary