ECON102 Study Guide - Final Guide: Labour Force Survey, Discouraged Worker, Human Capital

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Corey Van De Waal

Document Summary

After studying this chapter you will be able to: Explain why unemployment is a problem and define the unemployment rate and other labour market indicators. Explain why unemployment is present even at full employment, and how its rate fluctuates over a business cycle. Explain why inflation is a problem and how we measure it using the cpi. Unemployment results in : lost incomes and production, the loss of income is devastating for those who bear it. Unemployment benefits create a safety net but don"t fully replace lost wages, and not everyone receives benefits: lost human capital, prolonged unemployment permanently damages a person"s job prospects by destroying human capital. Population in 2 groups: working-age population total number of people >=15, in the labour force: Employed: full time employees, part time employees, want part-time, want full-time. Neither employed nor unemployed: labour force = employed + unemployed.