--%>
Assignment Help - homework help

Definition of Full Employment

Definition of “Full Employment”?

E

Expert

Verified

1. Full employment does not mean zero unemployment.

2. The full employment unemployment rate is equal to the total frictional and structural unemployment.

3. The full employment rate of unemployment is also referred to as the natural rate of unemployment.

4. The natural rate is achieved when labor markets are in balance; the number of job seekers equals the number of job vacancies.  At this point the economy’s potential output is being achieved.

5. The natural rate of unemployment is not fixed but depends on the demographic makeup of the labor force and the laws and customs of the nations.

6. The recent drop in the natural rate of 6% to 5.5% has occurred mainly because of the aging of the work force and increased competition in product and labor markets.

   Related Questions in Business Economics

  • Q : Examples and Applications of

    What are the Examples and Applications of International Trade?

    		•
  • Q : Firm costs and revenues Question:  You

    Question:  You are given the following data about two firms: FIRM A Quantity 0

    • Q : Interrelationships between economic

    Explain in detail the interrelationships between economic facts, theory, and policy.  Critically evaluate this statement:  “The trouble with economic theory is that it is not practical.  It is detached from the real world.”
  • Q : Technology in production Drawing a

    Drawing a production possibilities frontier needs the supposition that: (1) Decision makers encompass discretion over resource accessibility. (2) Technology is constant. (3) Income is fairly distributed. (4) Resources are considerably diverse. (5) At least three goods

    		•
  • Q : Major players in international trade

    Who are the major players in international trade today?  Besides Japan, what other Asian nations play significant roles in international trade?

    		•
  • Q : Question 7 Question 7: You are given

    Question 7: You are given the following data about two firms: FIRM A Quantity 0 1 2 3 4 5 6 Total revenue ($) 0 10 20 30 40 50 60 Average revenue ($) ___ ___ ___ ___ ___ ___ ___ Marginal revenue ($) ___ ___ ___ ___ ___ ___ Total cost ($) 30 42 50 60 76 100 14

    		•
  • Q : Elucidate redistribution of income

    Elucidate redistribution of income?

    		•
  • Q : Possession protection of property rights

    Why possession protection of property rights and private property promotes the market system?

    		•
  • Q : When Economic efficiency is present

    Economic efficiency is present while the: (w) economic system is a pure socialist system. (x) resources obtainable are slightly wasted. (y) value of output is maximized, specified restricted resources. (z) utilization of resources is minimized. <

    		•
  • Q : Market Economy Define the term Market

    Define the term Market Economy and also state its advantages and disadvantages?

    		•