Economic Question 1: (a) Complete the following table of costs for a firm. (Note: enter the figures in the MC column between outputs of 0 and 1, 1 and 2, 2 and 3, etc.) Output (units) | TC($) | AC($) | MC($) | 0 | 55 | ---- | 30 | 1 | 85 | 85 | | | | | 25 | 2 | 110 | 55 | | | | | 20 | 3 | 130 | 43 | | | | | 30 | 4 | 160 | 40 | | | | | 50 | 5 | 210 | 42 | | | | | 70 | 6 | 280 | 47 | | | | | 90 | 7 | 370 | 53 | | | | | 110 | 8 | 480 | 60 | | | | | 130 | 9 | 610 | 68 | | | | | 150 | 10 | 760 | 76 | | (b) How much is total fixed cost at: (1) an output of 0 units? Answer The “0 units” total fixed cost is 55. (2) an output of 6 units? Answer The “6 units” total fixed …show more content…
(e) Given your answer to (d), and assuming that GDP is currently $650bn, what will happen to GDP? Rise/Fall/Stay the same Answer AE=$665bn, GDP=$650bn When the AE greater than GDP, the investment, GDP, employment will increase, so GDP will increase. Question 5 (a) Describe the relevant criteria that the United States use to determine whether a person is ‘unemployed’ and what problems do you see using this measure? Answer Each month they have a survey of a random sample of households. Each member of the family who is 15 years of age or older is asked whether he or she is employed or unemployed. If a person works at least one hour per week for pay or at least 15 hours per week as an unpaid worker in a family business, that person is counted as employed. If the person is not employed, the question is then whether or not he or she has looked for work in the past month. If they have, the person is said to be unemployed. The type of unemployed have seasonal unemployed, frictional unemployed, structural unemployed, cyclical unemployed. This measure: unemployed rate= unemployed workers/total labor force (b) Why is frictional unemployment inevitable in an economy? Answer Frictional unemployment is usually quite short-term, and is therefore not of great concern from either a public policy or a social welfare perspective. Frictional unemployment is unemployment caused by the normal search time required by people with marketable skills who are
Unemployment is currently measured in the United States by counting those who "do not have a job, have actively looked for work in the prior four weeks, and are currently available for work" (Leonhardt). This means that a great deal of people are not counted as unemployed because they are discouraged and have not looked for work in the past four weeks. Or, the person was injured in some way and they are "not currently" available for work. This does not mean that the people in either of these groups do not actually wish to find work, but it does mean that they are not counted because of an archaic system that has been used by
Investment increases because a new house is an investment good. Total GDP increases by the same amount.
One of the scariest word for many individuals among the United States can be unemployment. Many families across America have had to deal with the hard blow that can come with losing a job, or not being able to find a job. Unemployment will always be around to snatch the job from any unwilling victim. While unemployment may seem like a broad term, there are actually four categories, or types, of unemployment. These four types are structural, cyclical, frictional, and seasonal.
Question 32 Which of the following conditions might cause the unemployment rate to be less than the natural rate of unemployment?
Unemployed persons are those who (a) had no employment during the survey (b) were available for work at that time (c) and had made specific efforts to find employment sometime during the survey (d) persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be
[ B. unemployment rate that is consistent with the economy operating at its potential output]
Before one can understand the various components of unemployment it should first be understood what exactly unemployment is. Unemployment is defined as people who are currently not employed, available for work and tried to find a job within the last 4 weeks. (Makiw 299). This means that not all people without a job are necessarily considered unemployed. Workers without a job who are no longer searching for a job fall into the category of discouraged workers. This group of individuals is not included in the figure for finding the unemployment of a
Unemployment is one of the main financial complications in America today. Individuals who are measured as unemployed if the individuals is looking for work or laid off for more than a week. There are numerous diverse details why an individual could be jobless. Three of those causes are cyclical, structural and seasonal unemployment. The administration tries to find answers in order to decrease unemployment by making up guidelines.
On the outstanding work “unemployment and job creation programs: is there a skills gap?” by Belinda Shipps and Robert L. Howard four types of unemployment are identified: Frictional, seasonal, structural, and cyclical. Frictional
According to Livermore (2008), people who are actively looking for work but are not currently in a contractual arrangement are considered unemployed. Since the recession in 2007, unemployment has been an ongoing problem in America. Many companies were laying off thousands of employees because they could not pay them. As of September 2011, the South and the West has the highest concentration of unemployment. Nevada has the highest jobless rate, 13.4%, followed by California with 12.1% (Cooper, 2011). The collapse of the housing bubble left Nevada with high rates of unemployment. South Carolina’s unemployment rate is 11.1% and is the fourth highest in the nation (Cooper, 2011). Most people had a hard time finding work because they
Unemployment is measured by the International Labour Organisation (ILO) who conduct a Labour Force Survey (LFS) and through the Claimant Count. The Claimant Count measures those who are claiming Job Seekers Allowance whilst the LFS is a sample survey which is used for the official figures in the UK as this allows comparisons internationally. Through these measures, it is then possible to identify the unemployment rate, which is defined as “the number of unemployed expressed as a percentage of the labour force”. (Sloman 2005 p. 787)
Unemployment refers to the numbers of people not working and can be measured by the claimant count and labour force survey. There are different types of unemployment and each of them requires different policies to overcome them.
The Bureau of Labor and Statistics measures unemployment twice a month. This branch of government conduct surveys to establish the number of people unemployed. People are un-employed for various reasons. The Bureau classifies them as long term unemployed, marginally attached to the labor force, part time for economic reasons and discouraged workers. People that are not working for twenty seven weeks or more are considered long term unemployed. If an in-dividual has looked for a job in the past twelve
Rates of unemployment are determined by calculating the percentile of the employable aged population within the U.S. economy that are able and willing to work for wages but for some reason are not gainfully employed. Some deception is at hand as the calculation does not account for people whom have ceased efforts to gain employment, keeping this in mind expert analysts have determined that the percentage of those not working is substantially higher than the numbers reported.