Chapter 3 Flashcards
1
Q
What is frictional unemployment?
A
difficulty in matching workers with jobs, perhaps due to lack of knowledge about job opportunities. Frictional unemployment is temporary.
2
Q
What is seasonal unemployment?
A
Demand fluctuates in seasonal patters eg building, tourism, farming
3
Q
What is structural unemployment?
A
Long term changes occur in an industry - high unemployment in region affected
4
Q
What is technological unemployment?
A
Form of structural unemployment - old skills not needed, labour saving aspect through use of machines
5
Q
What is cyclical unemployment?
A
Business cycle - boom, bust , recession, decline, recovery
6
Q
What is real wage unemployment?
A
when supply exceeds demand but real wages dont fall. usually caused by strong trade unions
