Share IB Econ 3.3 Unemployment
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Identify TWO economic costs of unemployment.
Loss of GDP, loss of tax revenues, loss of income, increased unemployment benefits, greater income inequality
Identify TWO social costs of unemployment
Increased crime rate and anti-social behaviour, Indebtedness, social deprivation
Identify TWO personal costs of unemployment
Stress, Low self-esteem, Poverty, Family breakdowns
Explain TWO policies to reduce NRU
reduce bargaining power of trade unions, reform welfare benefits, reduce barriers in labor mobility, reduce income taxes
A deflationary gap is associated with which type of unemployment?
Cyclical unemployment
Structural unemployment can be illustrated using (which diagram)?
Labor market diagram.
The NRU includes which types of unemployment?
Frictional, structural, seasonal
Explain why frictional unemployment is not necessarily bad for an economy
People seeking better job opportunities to find more rewarding jobs
Provide two examples of seasonal unemployment
Bus drivers for school + ski instructors
Minimum wage is associated with which type of unemployment?
Structural
Provide TWO reasons why unemployment might be difficult to measure
Underemployment, hidden employment, voluntary unemployment, disparities
Provide TWO examples of disparities in unemployment
Gender, race, geographical etc.
Provide TWO examples of Underemployment
Highly skilled or qualified people working in low-skilled occupations, Involuntary part-time workers who wish to work full-time
Provide TWO examples of voluntary unemployment.
This includes people who choose not to work full-time to take care of the elderly or children, as well as people who choose to retire early.
What is the formula for calculating unemployment?
# unemployed / labor force x 100%
Possible solutions to reduce seasonal unemployment include... (two examples)
Diversify the economy, provide retraining program, Reduce unemployment benefits, Improve information flow of job vacancies.
