3) Unemployment (chapter 15) a. Discuss the economic and non-economic costs of u

Question

3) Unemployment (chapter 15)

a. Discuss the economic and non-economic costs of unemployment.

i. What is the “labor force”? Does the labor force include the unemployed? What about discouraged workers?

ii. How can unemployment exist under capitalism? Isn’t the number of workers supplied always the same as the number of workers demanded?

1. Evaluate this statement: when the demand for workers shifts to the right, wages rise, unemployment falls.

2. Is this consistent with what happened between 2009 and 2016? Why or why not?

Explanation / Answer

3 a) the economic costs of unemployment are i) income lost ii) loss to economy due to decrease in goods and services. Non-economic costs are i) Mental stress ii) Negative effect on family iii) increase in crime rate

3i) Labor force is the collective number of people in a country who can and want to work or are currently working. Yes unemployed are included in labor force. Discouraged workers are not included.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.