Unemployment review sheet

Review of terms for unit 3.3: Unemployment

I have included this page, which contains a PDF handout as a simple revision exercise.  I find that many IB students get a degree of comfort from these short summary handouts.

1. Complete the following sentences by filling in the missing blanks:

The   population is defined as a person actively seeking and within the working age (18 – 65), not in full time and declared physically fit to work.  This is sometimes called the     or the working population.

  active  people  work  labour  force  inactive  education  economically 

 

 

2. Complete the following sentences by filling in the missing blanks:

The   represents the number of economically active people in the economy without paid employment.

rate  %  economically active  unemployment 

 

 

3. Complete the following sentences by filling in the missing blanks:

Hidden unemployment includes individuals who have given up looking for work as they fear they have no chance of being successful.  It also contains some    -    workers who are seeking full time work as well as many     people e.g. university graduates working in jobs where no education is required.  This is also referred to as   .

 overqualified  time  Grey  part  unemployed  underemployment

 

 

4. Complete the following sentences by filling in the missing blanks:

  of unemployment - the gap between     when the economy is in recession and the output level when the economy is at  employment, i.e. the size of the   gap.  Examples include the fall in revenues and consumption, when workers are laid off and the costs of the government making additional payments to those households on low incomes or without work. 

costs  Economic  recessionary  tax  output  domestically  transfer  full  Social  national 

 

 

5. Complete the following sentences by filling in the missing blanks:

  of   - examples include a loss of income and fall in living standards.  This impacts on the unemployed worker's family as well as the individual.  If the period without work becomes     then the unemployed person may suffer from a loss of self-esteem, motivation, depression and potential mental illness.

Economic  short  Social  long  term  unemployment  costs 

 

 

6. Complete the following sentences by filling in the missing blanks:

Unemployment (out of work) payments - made by some governments to the , which can negate some of the financial   to the family when a person loses their job.

  unemployed  salaries  loss  benefits  payments 

 

 

7. Complete the following sentences by filling in the missing blanks:

The      of  - this consists of the level of frictional and structural unemployment present in the economy.  Such a level of unemployment is     because even the healthiest of economies will have workers starting and leaving positions, looking for better jobs as well as some industries in decline as well as other new   emerging.

  rate  equilbrium  disequilibrium  natural  natural  industries  employment  unemployment 

 

 

8. Complete the following sentences by filling in the missing blanks:

    of - the number of workers willing and able to work in a particular job or industry for a given wage.

labour  supply  labour force  answer  Aggregate  Total 

 

 

9. Complete the following sentences by filling in the missing blanks:

        - the amount of output that is produced in an economy when that economy is using all of its resources efficiently; the full employment output would be a combination of output that is on that country’s PPC.

  employment  output  Equilibrium  natural  Full  rate 

 

 

10. Complete the following sentences by filling in the missing blanks:

  unemployment − when wage levels are pushed above the     and at this       the aggregate of labour is greater than the aggregate   for labour.

Equilibrium  level  wage  demand  supply  unemployment  output  Disequilibrium 

 

 

11. Complete the following sentences by filling in the missing blanks:

          / cyclical unemployment - this type of unemployment is caused by a lack of demand in the economy.  Unlike the other forms of unemployment, which operate separately of national income,     unemployment generally occurs following a period of falling economic activity or negative       .

  deficit  growth  unemployment  underemployment  output  Cyclical  economic  Demand 

 

 

12. Complete the following sentences by filling in the missing blanks:

Real wage /   unemployment - occurs when labour market imperfections preserve a  real wage rate than the real wage rate.

  classical  higher  lower  disequilibrium  equilibrium 

 

 

Total Score:

The review sheet is available as a PDF file at:  Review sheet

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