IB Econ 3.3 Unemployment | Baamboozle - Baamboozle

Possible solutions to reduce seasonal unemployment include... (two examples)

Diversify the economy, provide retraining program, Reduce unemployment benefits, Improve information flow of job vacancies.

What is the formula for calculating unemployment?

# unemployed / labor force x 100%

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.

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 disparities in unemployment

Gender, race, geographical etc.

Provide TWO reasons why unemployment might be difficult to measure

Underemployment, hidden employment, voluntary unemployment, disparities

Minimum wage is associated with which type of unemployment?

Structural

Provide two examples of seasonal unemployment

Bus drivers for school + ski instructors

Explain why frictional unemployment is not necessarily bad for an economy

People seeking better job opportunities to find more rewarding jobs

The NRU includes which types of unemployment?

Frictional, structural, seasonal

Structural unemployment can be illustrated using (which diagram)?

Labor market diagram.

A deflationary gap is associated with which type of unemployment?

Cyclical unemployment

Explain TWO policies to reduce NRU

reduce bargaining power of trade unions, reform welfare benefits, reduce barriers in labor mobility, reduce income taxes

Identify TWO personal costs of unemployment

Stress, Low self-esteem, Poverty, Family breakdowns

Identify TWO social costs of unemployment

Increased crime rate and anti-social behaviour, Indebtedness, social deprivation

Identify TWO economic costs of unemployment.

Loss of GDP, loss of tax revenues, loss of income, increased unemployment benefits, greater income inequality