Key Terms

Question 1

Employment

Answer 1

The use of labour in the ecconomy to produce goods and services

Question 2

Unemployment

Answer 2

Occurss when workers willing and able to work at current wage rates are unable to find employment

Question 3

Claimant Count

Answer 3

Method of measuring unemployment according to the number of people claiming benefits

Question 4

Level of unemployment

Answer 4

The number of working population who are unemployed

Question 5

Rate of unemployment

Answer 5

The percentage of a country’s workforce that are unemployed
no.of unemployed
______________ x 100
workforce

Question 6

Frictional unemployment

Answer 6

-Caused by time lags when workers move between jobs

Question 7

Seasonal unemployment

Answer 7

-Caused by fall in demand during a particular season

Question 8

Structural unemployment

Answer 8

-Caused by a permanent decline of an industry /ies

Question 9

Cyclical unemployment

Answer 9

• Caused by lack of demand in the economy
• leads to less jobs required
• leads to more unemployment etc

Question 10

Full employment

Answer 10

when an economy is using workers to produce output(occurs when theres no cyclical unemployment)