Unemployment 2

How is unemployment measured?

• By increasing money supply to increase consumption and investments

• By the proportion of women who join the labour force

• By the total number of workers available for work

• By reducing the rate of interest to increase consumption and investments

What is the meaning of unemployment?

• The highest level of employment possible

• Involuntary unemployment due to a lack of demand for goods and services

• The total number of workers available for work

• People moving between jobs e.g. new entrants to the labour market

What is the cause of seasonal unemployment

• Advances in technology replacing labour

• Possible causes: advances in technology replacing labour, foreign competition, globalisation, occupational & geographical immobility

• Seasonal changes in employment due to seasonal peaks and falls in demand

• There are always hundreds of thousands of job vacancies in modern economies

What are the causes of cyclical unemployment?

• The contraction phase of the business cycle

• workers leave their old jobs but haven't yet found new ones

• Miss match between the skills worked have and the skills needed by the employers

• Resulting by changes in the structure of the economy

What are the consequences of unemployment?

• Reduced consumer spending

• Tax is increase

• Low crime

• decrease dependence on social welfare

Which factors is NOT affecting the size of Labour Force

• Retirement Age

• Birth Rate

• Total size of the population of working age

• Number of people who remain in full time education

What is the definition of full employment?

• The total number of workers available for work

• The level of unemployment corresponding to where all who wish to work have found jobs, including frictional unemployment

• The highest level of employment possible

• Involuntary unemployment due to a lack of demand for goods and services

Which One is the cause of frictional unemployment?

• People moving between jobs e.g. new entrants to the labour market

• Resulting by changes in the structure of the economy

• Seasonal changes in employment due to seasonal peaks and falls in demand

• Involuntary unemployment due to a lack of demand for goods and services

What are the policies to correct cyclical unemployment?

• Increasing the rate of interest to decrease consumption and investments

• Increasing money supply to increase consumption and investments

• Increasing taxation (direct & indirect) to decrease consumption

• Increasing the exchange rate to decrease net exports

What are the policies to correct frictional & structural unemployment?

• Increasing unemployment benefits and income tax rates

• Investing on education and training to increase occupational mobility

• Reducing the rate of interest to increase consumption and investments

• Increasing money supply to increase consumption and investments