lecture 5

• What are the four impacts of long-term unemployment on individuals?

  Loss of income, skills, social interaction, self-worth
• Why do policymakers try to limit unemployment?

  Due to its economic and social costs
• Who sets the standard for measuring employment in the UK?

  Office for National Statistics
• What is the working age population?

  General population excluding specific age groups
• Who is classified as employed?

  Those holding full-time or part-time paid jobs
• What defines an unemployed person?

  Not having a job, actively seeking work
• What is the formula for the labour force?

  Labour force = Employed + Unemployed
• What is classified as "not in the labour force"?

  Potential workers not meeting employment criteria
• How is the unemployment rate calculated?

  Unemployment rate = Unemployed / Labour Force x 100
• If there are 1.5 million unemployed and a labour force of 33.86 million, what is the unemployment rate?

  4.4%
• What does the labour force participation rate indicate?

  Share of labour force to working-age population
• How do you calculate the labour force participation rate?

  Labour force / working age population x 100
• What is the labour force participation rate if the labour force is 33.86 million and the working-age population is 43.03 million?

  78.8%
• What are discouraged workers?

  Potential workers who have stopped looking for jobs
• Why are underemployed workers not included in unemployment statistics?

  They are considered employed regardless of hours
• What typically happens to the unemployment rate during a recession?

  It tends to increase
• What was the unemployment rate during the 2007–2009 recession?

  Nearly 10 percent
• What are some factors contributing to gender disparities in unemployment?

  Discriminatory norms and barriers to entry
• How does unemployment vary by education level?

  Higher unemployment among those with low education
• What factors contribute to disparities in unemployment by ethnicity in the UK?

  Labour market discrimination and lower education
• What is the relationship between households and firms in the labour market?

  Households supply labour, firms demand labour
• What does diminishing marginal product of labour mean?

  Each additional worker creates less output
• When does a firm stop hiring additional workers?

  When marginal product equals marginal cost
• What does the downward-sloping curve in the labour market represent?

  Value of the marginal product of labour
• What causes a movement along the labour demand curve?

  Changes in wages without other economic changes

  
• What can shift the labour demand curve?

  Changing output markets, productivity, input markets

  
• How is the aggregate labour demand curve derived?

  By summing individual industry labour demand curves
• What does the labour supply curve represent?

  Relationship between quantity of labour supplied and wage

  
• What factors can shift the entire labour supply curve?

  Changing tastes, opportunity cost, population

  
• How did World War I and II affect female labour force participation?

  Encouraged women to work in factories
• What effect did the Appliance Boom have on female labour force participation?

  Lowered opportunity cost of working outside home
• What demographic factor can shift the labour supply curve to the right?

  Increases in population, such as immigration

  
• What limits female labour force participation in many countries?

  Punitive maternity laws and benefits
• What is the WHO recommendation for minimum exclusive breastfeeding of infants?

  Not specified in the study material
• What is the significance of the length of maternity leave benefits?

  It affects female labour force participation rates
• How have household appliances affected women's labor force participation?

  They lowered opportunity cost by saving time.
• What has contributed to the rise in female labor force participation?

  Technology-induced change in opportunity cost.
• What effect does an increase in population have on the labor supply curve?

  It shifts the labor supply curve to the right.

  
• What is one factor that increases population?

  Immigration
• How do punitive maternity laws affect female labor force participation?

  They limit female labor force participation.