ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor...
-
Upload
allen-wells -
Category
Documents
-
view
214 -
download
0
Transcript of ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor...
![Page 1: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/1.jpg)
ECONOMIC CHALLENGESECONOMIC CHALLENGES
CHAPTER 11
![Page 2: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/2.jpg)
UNEMPLOYMENTUNEMPLOYMENT
The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage of people in the labor force who are unemployed.
![Page 3: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/3.jpg)
![Page 4: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/4.jpg)
Some unemployment is unavoidable and a natural part of a healthy economy – economists consider an unemployment rate of about 5% to represent full employment.
![Page 5: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/5.jpg)
4 TYPES OF 4 TYPES OF UNEMPLOYMENTUNEMPLOYMENT
1. Frictional unemployment – when workers are moving from one job to another – ex: Heather leaves her job as a receptionist to find a job as a data processor – during her search, she is considered frictionally unemployed.
![Page 6: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/6.jpg)
2. Structural unemployment – occurs as a result of changes in technology or in the way the economy is structured – Ex; less demand for TV repair specialist because of better technology.
![Page 7: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/7.jpg)
3. Seasonal unemployment – occurs from season to season as a result of holidays, the school year, harvest schedules, etc. – Ex: spring, summer, and fall are busy seasons for farm workers – however, they may lose their job during the winter months.
![Page 8: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/8.jpg)
4. Cyclical unemployment – results from recessions and economic down turns – harms the economy more than any other type of unemployment – Ex: when sales decline, producers tend to reduce production and lay off workers.
![Page 9: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/9.jpg)
INFLATIONINFLATION
An increase in the average price level of all products in an economy is called inflation – occurs when the quantity demanded is more than the quantity supplied, consumers must compete for limited products and prices go up.
![Page 10: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/10.jpg)
![Page 11: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/11.jpg)
DEFLATIONDEFLATION
The opposite of inflation is deflation, which is a decrease in the average price level of all products in an economy – occurs when the quantity supplied is more than the quantity demanded.
![Page 12: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/12.jpg)
![Page 13: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/13.jpg)
Economists classify inflation into 2 general categories based on cause:
![Page 14: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/14.jpg)
1. DEMAND - 1. DEMAND - PULLPULL INFLATIONINFLATION
Occurs when prices are pulled up by high demand – Ex: during the 1996 holiday season, enormous demand for the Tickle Me Elmo doll caused widespread shortages which increased the market price for that good.
![Page 15: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/15.jpg)
2. COST- 2. COST- PUSHPUSH INFLATION INFLATION
Occurs when prices are pushed up by high production cost – Ex: a car could be bought in the 1920’s for as little as $250, however, new technology has increased production cost and led to a higher price for cars.
![Page 16: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/16.jpg)
POVERTY and INCOME POVERTY and INCOME DISTRIBUTIONDISTRIBUTION
Another way to examine the economic well-being of a nation is to measure the number of people who are living in poverty – Ex: in 2006, 12.3% were living in poverty in the U.S.
![Page 17: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/17.jpg)
![Page 18: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/18.jpg)
According to the Census Bureau, individuals, families, or other households are living in poverty if their total incomes fall below designated income levels – the poverty threshold, or poverty level, is the lowest income that a family or household of a certain size needs to maintain a basic standard of living – Ex: 1n 2008 the poverty threshold for a family of 4 was $21,200 .
![Page 19: ECONOMIC CHALLENGES CHAPTER 11. UNEMPLOYMENT The most closely watched and highly publicized labor force statistic is the unemployment rate, or the percentage.](https://reader036.fdocuments.us/reader036/viewer/2022082715/5697c02b1a28abf838cd84f2/html5/thumbnails/19.jpg)
The poverty rate is the percentage of individuals or families in the total population that are living in poverty.