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[ECON 1010] - Midterm Exam Guide - Ultimate 41 pages long Study Guide!


Department
Economics
Course Code
ECON 1010
Professor
Ardeshir Noordeh
Study Guide
Midterm

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York
ECON 1010
MIDTERM EXAM
STUDY GUIDE

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lecture 2
chapter 21
Monitoring Jobs and Inflation
-why unemployment is a problem?
-lost production: labour is one factor of production, if not engaged in labour not
producing and increasing GDP, we have lost production
-lost human capital: different grades of labour, if they don't use it and stay
unemployed, they lose the skill, end up with lost human capital
-human misery: causes human misery, if they are unemployed, don't have enough
money
-social impact: they might start doing things that can have a negative social impact, if
people stay unemployed for too long, resulted in riots and revolutions if long term
unemployment
-tax implications: when people are not working government doesn’t have the revenue
from tax, so other things in society suffer, such as fixing roads, etc
-employment and unemployment
-labour force survey (LFS): every month stats Canada conducts LFS, of 54 000
households, the population is divided into two groups:
-the working age population : the number of people aged 15 years and older who are
not in institutional care
-people too young to work (under 15 years of age) or in institutional care
-who is considered employed in the LFS: anyone with either a full time or part time job
-who is considered unemployed in the LFS: anyone who is available for work and
meets one of the following conditions:
-without work but has made specific efforts to find a job within the previous 4 weeks
-laid off form a job and is waiting to be called back to work
-waiting to start a new job within 4 weeks
-four labour market indicators:
-the unemployment rate
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lecture 2
percentage of the labour force that is unemployed
the unemployment rate is (number of people unemployed / labour force) x 100
2013, 7.1 percent was the unemployment rate of the labour force 1.35 million were
unemployed of 19.08 million people in the labour force
unemployment rate increases in a recession
-involuntary part time rate
is the percentage of the labour force who work part time but want full time jobs
the involuntary part time rate is : (number of involuntary part time works / labour
force) x 100
in 2013, 913600 involuntary part time works and the labour force was 19.08 million
the rate was 4.8 percent
-the labour force participation rate: how many people from the labour force are actually
participating in the labour market
is the percentage of the working age population who are members of the labour
force
the labour force participation rate is (labour force / working age population) x 100
in 2013 the labour force was 19.08 million and the working age population was
28.67 million
66.5 percent was the labor force participation rate
-the employment-to population ratio
is the percentage of the working age population who have jobs
the employment to population ratio is: (employment / working age population) x 100
in 2013 the employment to population ratio was 61.8 percent
-labour force participation and employment to population both trend upward rapidly
before 1990 and slowly after 1990
-other definitions of unemployment :
-the purpose of the unemployment rate is to measure the underutilization of labour
resources
!2
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