2.3 Signposting Flashcards
1
Q
Problem with LFS (Labour Force Survey) Meausure of Unemployment
A
- The Hidden Unemployed
- The Economically Inactive
- The Under-Employed
- Disparities
- Cost
2
Q
Types of Unemployment
A
- Cyclical Unemployment (Demand-Defecient/Keynesian Unemployment)
- Real Wage Unemployment (Classical Unempoyment)
- Frictional Unemployment
- Seasonal Unemployment
- Structural Unemployment
3
Q
Causes of Structural Unemployment
A
- A country losing its comparative advantage in production in a given industry
- Technological advancements
- Education (Poor Education, Lack of Education, Education that doesn’t evolve with the times)
4
Q
Determinants of the Natural Rate of Unemployment
A
- Generous benefits system and high rates of income tax
- Excessive labour market regulations
- Under provision of transport infrastructure and affordable housing infrastructure
- Underprovision of adeqaute in work training schemes
5
Q
Costs of Unemployment to the Economy
A
- Lost output
- Deterioration of government finances
- Cost to other economies
- Social Costs
6
Q
Costs of Unemployment to the Individual
A
- Lost income
- Hysteresis
7
Q
Benefits of Unemployment
A
- Easier for firm to find workers
- Unemployment allows workers to take time in finding a suitable, rewarding job for themselves
- Unemployment can help to keep inflation under control
8
Q
Evaluation of Whether Unemployment is Good or Bad
A
- The level of unemployment
- The duration of unemployment
- The type of unemployment
- The distribution of unemployment
