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Economics (Unit 6 (Section 6 - Causes of unemployment (Structural - When…

- - - - Income, how much do you make
      - Output how much do you produce
        
        A flaw in this is that the unemployment benefit is money that is not outputing anything
      - Expenditure, How much do you spend. There are issues with this
        
        People save money.
        
        People are not always inclined to spend everything that they make
    - - Infant Mortality Rate
      - Crime
      - Standard of Living
      - Inequality
      - Weather
      - Life Expectancy
      - Health
      - Jobs
      - Pollution
      - Productivity
      - And many others. GDP just gives us an idea of the sheer value of an economy but not much insight into how it's people live.
  - - - Life Expectancy at birth
      - GDP
      - Standard of living.
      - Countries are categorized
        
        In the developed world they are above 0.8
        
        High is about 0.7<0.8
        
        Medium is about 0.6<0.7
        
        Low is below 0.6
  - - - Miners, who are only skilled in mining suffer when mining goes out of prominence
- - - - Goods
        
        The goods that you import and export
      - Services
        
        The services that you import and export
      - Investments/Incomes
        
        The investments of a country, such as bonds
      - Transfers
        
        Aid and things. During the earthquakes we ran a surplus transfers because we received money but usually we are in a deficit surplus.
  - - - Import Tariffs
      - Import Quotas
      - Import Licensing
      - Administrative Complexity
      - Subsidies
      - Exchange Control
      - Exchange rate manipulation
      - Embargo
  - - - Selling product at a price below market prices. For example, in aid situations, the US can sell rice with the help of aid organisations at prices lower than what they were produced for. This sets prices artificially low and hurts local producers.
- - - - Popularity
        
        If a good is popular, there will be more demand at some price
        
        This is achieved by advertising
        
        Important for fashion based companies
      - Income
        
        If peoples incomes are greater, then they will have more money to spend, therefore they can buy more products or spend more on the same products
        
        This helps out luxury products the most
      - Age Distribution
        
        If your product is targeted at a specific age group, if the number of people in that age group increases, it means there will be greater demand for your product
      - Price of other products
        
        The price of other products, such as your competitors products, and supplementary products has an effect on the demand for your product.
        
        If competitors products decrease in price, demand for your product will decrease too.
        
        If the price of goods that supplement your goes down, then the demand for your good will go up.
  - - - Rising or falling production costs
        
        If the cost of inputs to production (raw materials, labour, etc...) increases, then the supply curve shifts left. If the cost of inputs decreases, then the supply curve shifts right.
      - Physical conditions
        
        If there is a change in physical conditions that affect production, especially in agriculture, this affects the supply curve
        
        Physical conditions include
        
        Drought
        
        Flooding
        
        Soil Nutrients
      - Taxation and Subsidies
        
        If the government taxes producers more, then it increases the cost of production, and causes a shift left of the supply curve.|
        
        If the government provides a subsidy to producers, it means that the cost of production decreases, so the supply curve shifts right.
      - Joint Supply
        
        If there is joint supply, then it means that the supply of one thing is dependent jointly on the supply of another. For example many gasses such as kerosene, diesel and gasoline are interdependent so if supply of one goes up, then it is likely that the supply of the others will go up, regardless of the demand for the others.
- - - - Spending enough to promote growth, while trying to avoid inflation
      - A balance between unemployment and inflation rates
        
        There is NAIRU. The Non Accelerating Inflation Rate of Unemployment. This is the balance at which Unemployment is tolerable as it keep inflation manageable
        
        Having a healthy balance between unemployment rates and wage inflation rates. If there is almost full employment, then companies will have to increase wages to attract the best workers. This causes wage inflation and in turn inflation. So the government needs to balance inflation and unemployment
      - The government needs to balance taxes. If tax rates are too high on the rich, then many of them may leave, this is sometimes called a brain drain. So taxes cannot be too high so as to force away the rich.
    - - A state of almost full employment
      - A manageable inflation rate around 2-3%
      - Year by year sustainable growth
      - The reduction of inequality
      - A surplus in the balance of payments. Exporting more than you import. This can be over multiple years.
- - - - Age Structure
      - Occupational Structure
      - Urban Rural Divide