Unemployment — Flashcards

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According to Prof. Pigou, 'A person can be called unemployed only when he is willing to work but is not able to find work.' In simple terms, unemployment is a situation where a person is ready and cap…

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Involuntary (Unwilling) Unemployment: Person is eager and ready to work at current wage rate but is deprived of work - this is a serious economic problem. Voluntary Unemployment: Person is not willing…

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1. Time: Less than 28 hours/week = intensively unemployed; 28-42 hours/week = less intense unemployed 2. Income: Very low income that cannot solve poverty problem 3. Willingness: Person accepts lower …

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Open Unemployment: Individuals who are ready to work at current wage rate and possess qualifications but do not get any job. Example: Educated youth who migrate from villages to cities in search of jo…

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Underemployment: When labourers cannot utilize their capabilities fully and accept less capable jobs or work for fewer hours than desired. Examples: 1) A labourer gets work for only 5 hours instead of…

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Disguised Unemployment: Hidden unemployment where too many persons are employed in an activity, and removing some workers doesn't change total production (zero marginal productivity). Example: If 5 la…

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Cyclical Unemployment: Unemployment that occurs during economic depression due to lack of effective demand. During depression, demand for goods reduces, industries cut production or shut down, leading…

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Frictional Unemployment: Short-term unemployment caused by changes in demand, production, technology, or consumer preferences. When old production systems are replaced by new ones, workers become temp…