Economic Growth 2.1.1 Flashcards
2nd deck (14 cards)
What is the definition of unemployment?
Unemployment refers to the situation when individuals who are capable of working are unable to find a job.
True or False: High unemployment rates can lead to increased government spending on social welfare programs.
True
Fill in the blank: The __________ effect of unemployment includes the loss of income for individuals and families.
economic
Multiple Choice: Which of the following is a potential effect of high unemployment on society? A) Increased crime rates B) Higher consumer spending C) Lower government debt
A) Increased crime rates
What demographic groups are often disproportionately affected by unemployment?
Youth, minorities, and low-skilled workers are often disproportionately affected by unemployment.
True or False: Unemployment rates are the same across all regions in a country.
False
What economic phenomenon can result from prolonged high unemployment?
Stagnation or recession can result from prolonged high unemployment.
Fill in the blank: __________ unemployment occurs when there is a mismatch between workers’ skills and job requirements.
Structural
Multiple Choice: Which policy is often implemented to combat high unemployment? A) Tax cuts B) Increased tariffs C) Import quotas
A) Tax cuts
What is cyclical unemployment?
Cyclical unemployment is unemployment that results from economic downturns or recessions.
True or False: Unemployment can have long-term effects on an individual’s mental health.
True
What effect does unemployment have on consumer confidence?
Unemployment typically decreases consumer confidence, leading to reduced spending.
Fill in the blank: __________ unemployment is temporary and occurs during transitions between jobs.
Frictional
Multiple Choice: What is one direct impact of high unemployment on the government budget? A) Increase in tax revenues B) Decrease in social security payments C) Increase in welfare expenditures
C) Increase in welfare expenditures
