Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Macro Economics > types of uneployment > Flashcards

types of uneployment Flashcards

1
Q

how many types do you need to know

A

5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are the 5 types of unemployment

A

seasonal
frictional
cyclical
strucural
realwage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is cyclical unemploymeng

A

unemployment casued by insufficient AD in eocnomy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

in terms of cyclical unemp a lack of ad in econ means

A

less d for firms to hire labour as derived demand for g/s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

if rowht is low there is a lower demand for

A

labour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

how do we show cyclical unemployment on a grpah

A

AD shifts left so level of growth from y1 - y2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

if spending on output is low workers producing output are

A

no longer required and unemployment will rise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

cyclical employment aka

A

demand deficient unemployment or keynesian unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

cyclical unemploymet closley linked to

A

negative ouput gaps

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what does cyclical unmploymet being linked closely to -ve output gaps mean

A

if actual econ growth is below trend rate

the level of demand in the econ wont be high enough to ensure all workers looking for jobs can find employment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

even if growth is positive but low what may rise

A

cylical unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is structural uneploymen t

A

results from mismatches between supply available and the labour demand for differently skilled labour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

structural unemployment i due to long term chanfes in the

A

labour market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

structural unemployment is due to long term changes in teh labour market which mean

A

certain industries declining whilst others growing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

in terms of structural unemployment - workers vecoming unemployed from one industry may be unable to

A

switch to another industry due to not having adeqaute skills for new rising industries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are the 3 things structural unemployment is associated with

A

occupational immobility

geographical immobility

long term trends in industyr growth and decline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is occupational immobility

A

workers dont got skills or qualifications nwwsws meaninf they cant ransfer jobs or move on to a new profession and find work

cause skills they have not needed or they dont have the skilss - lost em or theyve become obsolete

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is geogrpahical immobility

A

when workers cannot or not willing to move

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

how can advances in tech cause structural unemployment

A

workers replaced by automated produciton

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is it called when advances in tech cause strucutral unemployment casue workers repaced by automated production

A

technological unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is regional unemployment and what is it linked to

A

people unwilling to move from one area to another

failure of regions to attract new businesses

linked to geographical immobility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

structural unemployment can be affected by

A

globla factots

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what are the global factors tructural unemployment can be affected by

A

emergini industrial naitons e.g china and india producec goods more cheaply than UK

so foreign goods more price comp

leads to declien in employment in UK manufacturing industries

likely wokers from these industries remain unemploeyd unless can fill vacanicies in other industries in whihc hte UK got comp advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what is fricitonal unemp

A

uneployment due to workers moving between jobs

timee takne to search fro new job = friciotnal unemp

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

frictioanl unemp is usually what kind of term

A

short terms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

frictional uneployment cna be longer if

3 marks

A

lack of info

insuffficient retraining opportnties

welfare benefits ‘too generous’ to prodive incentive to take jobs sooner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

how do we reduces friciotnal unep

A

imporvemts in helping peopl find out locally and nationally what jbo vacacies exist

create stronger incentives for peopel to accept avaialble jobs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

ficitonal unemp aka

A

search unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what is ral wage unemp

A

when wages are foxed above equilibrium wagge rate in labour mkt causing excess sipply of labour

30
Q

in terms of real wage unemployment a hihg min wage may mean what

A

workers who are looking for jobs cannot find employment as ther is a lower quantity of labour demanded ag t hat wage

31
Q

real wage unemploymet aka

A

classical unemployment

32
Q

what graph do we draw to show real wage unemp

A

real wage - y axis

quaniity of employment 0 x axis

laobur supply labour demand

w2 kine

excess supply and demand highlighted byb real wage unemp

33
Q

we can also say real wage unemploymenet occurs becasue

A

failure eof labour market to clear

34
Q

what is seasonal unemployment

A

unemployment due to job depending on season e.g summetime fruit picker

35
Q

what are the 2 ther types of unemployment

A

voluntary and involuntary unemployment

36
Q

what is voluntary unemployment

A

people unwilling to acept job at going wage rate despite tehr being jobs avaiablr

37
Q

what is involuntary unemployment

A

people are unable to find employment at the current market wage rare

38
Q

in voluntary uneployment what unemployment may count in this category

A

friciotnal unemployment

39
Q

why might fricitonal uneployment count in volunatry uneployment

A

if worker remians unemployed longer due to welfare benefits providing suppor

but this could be seen as a subjective measure

40
Q

what is the natural rate of unemplloyment

A

rate of unemployment that consists of all volunary, structural and frictional unemployment

41
Q

when may natural rate of unemploymnt increase

A

if preplacemnt ratio tpp high

42
Q

what is the replacement ratio

A

disposable income out of work/disposable income in work

43
Q

a replacemtn ratio of close to 1 or above means

A

prspm cam earn in beenfits at least as much as hey could do in employment

44
Q

a ratio of 1 reduce incentive to

A

work

45
Q

reducing replacemtn ratio below 1 should reduce incentive to

A

reamin frictionally unemployrd

46
Q

what are the 4 frictional (or voluntary factors that can reduce inventive to remain frictionally uneplotmed

A
  • less gen beenfits for unemployed
  • slower minimum wage increases
  • introduction of tax credits
  • lower income tax or a higher tax free alownace
47
Q

how can tax credits reduc eeinevtive to remain ‘frictionally unemployed’

A

allows people in lower paid jobs to keep some of their beenfits

48
Q

(structural factors) regional unempoyment exists when

A

unemployed people unwilling or possibly unableto move to where job vacanices are i.e eo imonoile

49
Q

structural factors) what could regional unemp be due to

A

lack of knowledge of job vacies in otherr cities

barreos to moving e..g high house prices

move impractical due to famo ties

50
Q

structural factros ) the harder it is to relocate

A

the higher the regional unemployment

51
Q

strucutral factors ) unemployed worekrs may lack

A

appropritat eskills for jobs vancies that exist

52
Q

structural factors - give xamples of unemployed woekrs lacking the appropriat eskills for vacancies that exost

A

deline of heavy industries e.g mininng

created lareg number of unemploued who unable to simply move into jobs created in rising industrues such as ICT

53
Q

structura factors) how cna we solve problems of workers lacking appropritate skills for job vacancies

A

better trainig of unemployed workers

54
Q

the natural rate of unemploymetn exists even if

A

AD is hihg - cuclical unemployment largely eliminated

55
Q

policies to reduce natural rate of unemp are connected with

A

reforms to supply side of the economy

56
Q

unemploylemt can beb categoriesd according to whether caused by

A

demand side

supply side factors

57
Q

explain how unemployment can be caused by demand side factors

A

cycical unemp caused by demand side factors .e AD

58
Q

Explai how unemployment can be caused bu supply side fcators

A

friciotnal and structural unemployment caused by productive potential of the econ

connected with the econs log term aggregate supply

therfore casued by SS factorf

59
Q

in order to minimise uneployment its likely government swill use a

A

combo of policies relating to AD and AS

60
Q

Full employment , natural rate of unemploymetn and wehere ther is no cyclical unemployment are used

A

interchangably

61
Q

what i snother way of htinking of atural rat of unmep

A

unemployment exisitng when eoc on the LR AS currv or verticla portion of AS curve

62
Q

if unemployment exist when econ on LR verticla portion of AS curve any attempt to reduce unemployment htrough demand side policies will

A

increase inflation

63
Q

if unemploymen exists on vertical portion of keynesioan AS curve how can we reduce unemployment durther and safely

A

supply side policies

64
Q

what are the 8 conseuences of unemp

A

risk of poverty for nem

health issues (mentla and phsycial) for unep

crime levesl may rise whn it rises (but link not always clear )

lower TR for gov due to fewer people working + decrease in speing

increased gov spending on welfare benefits for unemployed

deskilling of workforcce

wasted resources

less pressure on wages to rise - why?

65
Q

explain how a consequence of unemployment os a deskilling of workfore

A

longer youre unemployed, harder it is to rejoin workforce - known as hysterisis

66
Q

if resources are waasted in terms of unemp it means eocn cant operate on its

A

PPC

67
Q

LESS PRESSURE ON WAGES TO RISE MEANS

A

POSSIBLY LOWERING COST PUSH INFLAITON

68
Q

typical mistakes - full unemplyoment dont mean

A

0 unemployment

69
Q

typical mistake - jiist bcuase unemployment exists what can’t we assume and hwy

A

no jobs

early 2020 800k jobs avaialbe

70
Q

typical mistakes why cna imporvemtns in tech not be blamed for rises in unemployment

A

it destroys some jobs but creates more jobs than it destroys

Macro Economics (22 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions