...Causes of Unmeployment n every society there will always be a number of people who are unemployed. Unemployment is when there are people in our society who desire work but are unable to obtain it because of the fact that there are not enough jobs for everyone. This is bad for the Australian economy because there are lots of fit and healthy people out there who have the ability work but have to stay home and as a result they have to go on the doll. There are five different types of unemployment: seasonal, frictional, hard-core, structural and cyclical. Seasonal unemployment is when people are unemployed due to the changing of seasons because in some seasons there are certain occupations that have a greater demand for work then others. For example, fruit pickers and sheep Shearer’s can work only at certain times of the year and will spend part of each year unemployed unless they can find work. People affected by seasonal unemployment often work very long hours during their working season to make up for the time that they will be unemployed. Frictional unemployment is caused bye people changing jobs constantly. A person who is unhappy with his or her job may quit their job in order to find something more suitable. A high quality secretary might leave her job because she is required to do minimal tasks like making coffee or washing plates and cups, or a factory worker may quit because his employer might not give him time off to attend a carpentry course that will improve his...
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...more realistic than we know. Will robots take over the world? Since the invention of the personal computer, we have taken tremendous strides in technology. There are new technologies now in the workforce. It seems more plausible that soon our jobs can be a thing of the past. This essay will talk about: how artificial intelligence is used to perform basic computations, how robots are working side by side with humans, and the impact robots have on low wage jobs. The roots of artificial intelligence (AI) can be traced to the days of Aristotle. He described a method of mechanical logic known as syllogism. Syllogism is a logical argument that uses deductive reasoning to come at a conclusion based on two or more propositions that are assumed to be true (Noving, 2012). Scientists have been working on developing AI since the 1960s. The main issue that was raised was that there was no formulaic way of describing a computer as “intelligent”. There are many computers and programs that are smarter than most humans, but if their functions are to multiply large numbers, or keep track of thousands of bank account balances, then they are not referred to as intelligent. They are only referred to as correct (Noving, 2012). In his article, Martin Ford (2013) said, “It is important to realize technology does not have to cause immediate job destruction in order to create significant future unemployment.” Several low wage jobs are not immediately affected by robotics now. This is largely due to humans’...
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...We should automate all the mills and factory that are government owned. INTRODUCTION Bangladesh is a democratic republic with a parliamentary form of government. Bangladesh remains a developing country with poor infrastructure. Occupationally, 75 percent of the civilian labor force, which is currently estimated at 56 million, is directly or indirectly engaged in agriculture. Only 12 percent is engaged in industry. Unemployment is estimated at around 18.5 percent. In terms of age structure, it is more youthful than in the western countries. Heavy pressure of population on scarce land has no doubt created an extremely unfavorable land-man ratio. The GDP of Bangladesh is total $258.608 billion, Per Capital $1,572 (estimate 2010). Due to rapid growth of the population in the last few decades the Bangladeshi labor force has grown rapidly, as there were a large proportion of young people born in the 1960s and 1970s. According to the EIU Country Profile the Bangladeshi labor force almost doubled in a matter of a decade, growing from 30.9 million people in 1985-86 to 56.0 million people in 1995-96. Although all sectors of the national economy experienced significant growth, they were far below the speed of the labor force growth. According to Bangladeshi national statistics, in 1995-96 only 12.4 percent of the labor force had formal employment, while 40 percent were considered "employed in family-based" businesses, 29.6 percent were considered "self-employed," and 17.9 percent...
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...PRODUCTIVITY AND GROWTH CHAPTER SUMMARY IF THE POPULATION IS CONTINUALLY INCREASING, AN ECONOMY MUST PRODUCE MORE GOODS AND SERVICES SIMPLY TO MAINTAIN ITS STANDARD OF LIVING, AS MEASURED BY OUTPUT PER CAPITA. IF OUTPUT GROWS FASTER THAN THE POPULATION, THE STANDARD OF LIVING RISES. An economy’s standard of living grows over the long run because of (a) increases in the amount and quality of resources, especially labor and capital; (b) better technology; and (c) improvements in the rules of the game that facilitate production and exchange, such as tax laws, property rights, patent laws, the legal system, and customs of the market. The per-worker production function shows the relationship between the amount of capital per worker in the economy and the output per worker. As capital per worker increases, so does output per worker, but at a decreasing rate. Technological change and improvements in the rules of the game shift the per-worker production function upward, so more is produced for each ratio of capital per worker. Since 1870, U.S. labor productivity growth has averaged 2.1 percent per year. The quality of labor and capital is much more important than the quantity of these resources. Labor productivity growth slowed between 1974 and 1982, in part because of spikes in energy prices and implementation of costly but necessary environmental and workplace regulations. Since 1983 productivity growth has picked up, especially since 1996, due primarily to information...
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...process. The new equilibrium will have a higher price and a lower quantity of cars. The price of steel is the exogenous variable in this question, while the price and quantity of automobiles are the endogenous variables. 2. Consumers often purchase a computer with a specific functional use in mind, so they will request a product that is best equipped for their intended use. These differences in computer preferences cannot be captured in a model that does not allow for differences among individuals. For example, a model that assumes that all individuals are equal will not be able to make predictions about changes in demand from desktop to laptop computers because the simple model will state that one type of computer is preferred by all. 3. a. i. Sticky prices. Grocery store prices often remain fixed for long intervals of time. ii. Market clearing behavior. The stock market is a type of auction market where the price of shares are constantly adjusting to changes in supply and demand. iii. Market clearing behavior. In recent years, computer manufacturers have changed prices more frequently in response to increased competition and the use of Internet sales. iv. Sticky prices. Pizza places change prices infrequently because they do not want to incur the costs associated with reprinting and redistributing their updated menus to customers. b. Slow price adjustments are common in situations where prices have to be printed for display and therefore are costly to reprint. Also,...
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...there is a homeless people on the ramp holding a sign in his hand stating that they need food or money. In today’s economy, unemployment is at an all-time high. Many Americans face issues that impact their way of life, causes stress, and creates financial strain which makes it hard to provide for their family. No one can deny that unemployment has caused an impact of their lives’ or families. There are many American’s who are unemployed due to the three types of unemployment. The three types of unemployment are Structural, Frictional, and Seasonal. Structural unemployment comes from being an absence of demand for the workers that are available. Many people lose their job because the update on technology. Some people are so uses to be “old fashion” when it comes to work they would rather use the old typewriter as well as computers because they just can keep up with the new technology. People that have lost their jobs due to changes in the economic they can take small steps in to learn how new thing works and later see how well they can grasp to the new technology. Next, is Frictional which is unemployment that is caused by people who moves between job, careers and location? These people are the ones that are more likely to make it the unemployment world because they are the ones’ who can adapt to change. The final type of unemployment is Cyclical which is someone is laid off from their job because of growth rate which can cause a recession. One way that they...
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...Econ 111 Summer 2007 Midterm Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Production Possibilities Pizza Soda Possibility (per hour) (cases per hour) A 0 100 B 1 95 C 2 80 D 3 60 E 4 35 F 5 0 1) In the above table, the production of 3 pizzas and 80 cases of soda is 1) A) possible only if there is inflation. B) impossible unless more resources become available or technology improves. C) feasible but would involve unemployed or misallocated resources. D) possible only if the economy produces with maximum efficiency. 2) Economic growth can be pictured in a production possibilities frontier diagram by 2) A) shifting the production possibilities frontier outward. B) making the production possibilities frontier less bowed out. C) making the production possibilities frontier more bowed out. D) shifting the production possibilities frontier inward. 3) A person has an absolute advantage in an activity if that person can 3) A) perform that activity at a higher opportunity cost than anyone else. B) perform the activity at a lower opportunity cost than anyone else. C) produce fewer goods in a given amount of time than another person. D) produce more goods in a given amount of time than another person. 4) Comparative advantage is 4) A) the ability to perform an activity at a zero opportunity cost. B) the ability to perform...
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...mechanism by which this is achieved is specialisation. Domestic industries now compete against foreign firms at home and abroad. Uncompetitive firms will be eliminated by more efficient rivals, which mean higher unemployment in uncompetitive countries. For a small, open economy like Ireland, the solution to unemployment caused by competition from abroad is to capture large economies of scale. This can be achieved by focusing on becoming the world leader and largest producer in a small, specialized segment of an established industry. For instance, supplying specialized inputs for the car manufacturing industry or parts of a computer processor. Another cause of unemployment is immigration. The impact of immigration on the labour market critically depends on the skills of migrants, the skills of existing workers and on the extent to which migrants have skills that are substitutes or complements to those of existing workers. Generally migrants whose skills are substitutes will cause higher unemployment through lower wages while complementary skills have no adverse impact on employment. However, while immigration can result in increased unemployment in the short run, immigrants expand consumer demand for goods and services. In the medium to long run this results in greater demand for labour and thus increased wages and employment in the economy. This alleviates the initial increase in...
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...Interest rates are presently low at 0.5% which makes borrowing low and should encourage investment from overseas. • Inflation down to 4.2% • Taxation rate is high in the UK which may deter oversea employees and investments. • Well developed country, presently with an economy struggling to come out of recession • 6th largest economy in the world and third largest in Europe • Currency: British pound. The exchange rate is presently £1 to $1.63 • Service sector makes up 73% of GDP – London is the world’s largest financial sector alongside New York. Edinburgh is also one of the largest financial centres in Europe • Other key industries include: tourism, aerospace, pharmaceutical, automotive Socio/Cultural • Unemployment rate: 7.7%. As there is a high level of unemployment from people skilled in most industries, there is a good pool of skilled labour available and at an affordable price. • Workforce mainly centred in South East England • The population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer. It also means some firms...
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...Introduction The use of computers to control a particular process in order to increase reliability and efficiency, often through the replacement of employees. For a manufacturer, this could entail using robotic assembly lines to manufacture a product. Automation is the use of control systems (such as numerical control, programmable logic control, and other industrial control systems), in concern with other applications of information technology (such as computer-aided technologies [CAD, CAM], to control industrial machinery and processes, reducing the need for human intervention. In the scope of industrialization, automation is a step beyond mechanization. Whereas mechanization provided human operators with machinery to assist them with the muscular requirements of work, automation greatly reduces the need for human sensory and mental requirements as well. Processes and systems can also be automated. Automation plays an increasingly important role in the global economy and in daily experience. Engineers strive to combine automated devices with mathematical and organizational tools to create complex systems for a rapidly expanding range of applications and human activities. Many roles for humans in industrial processes presently lie beyond the scope of automation. Human-level pattern recognition, language recognition, and language production ability are well beyond the capabilities of modern mechanical and computer systems. Tasks requiring subjective assessment...
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...Frictional unemployment is defined by Investopedia as “Unemployment that is always present in the economy, resulting from temporary transitions made by workers and employers or from workers and employers having inconsistent or incomplete information” and gives another example as a first-time job seeker may lack the resources or efficiency for finding the company that has the job that is available and suitable for him or her. As a result this person does not take other work, temporarily holding out for the better-paying job. Retrieved from http://www.investopedia.com/terms/f/frictionalunemployment.asp#axzz1ZfufVuVW on 10/01/2011. Wisegeek.com also defined functional unemployment as natural phenomena and is viewed as beneficial to both the economy and the worker. They went ahead to explain that any time someone is between jobs, this is considered frictional unemployment. Some common examples include craftspeople who are laid off between projects and people who quit their jobs to relocate or to seek out better employment. Retrieved from http://www.wisegeek.com/what-is-frictional-unemployment.htm on 10/01/2011. Based on the definitions given above, it is quite clear that frictional unemployment is inevitable. So far as no living thing lives forever, there comes a time where an employer goes out of business and or the employee quits. It is considered a natural circle which is actually healthy for the economy. Since economists say it’s not possible to have 0% unemployment frictional...
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...taking into consideration the cost of living in a particular region and how the standard of living differs from country to country. For example, if we compare the US national income with that of Brazil, it will be higher but we would be comparing two different standard of livings, in addition the US is a bigger country than Brazil, and the costs of living in Brazil is lower than the Unites States. In addition, the population and size of the countries do not compare. We can argue that we have a higher quality of standard of living in the Unites States than in Brazil as our national income is higher, but the figure is not telling us how schools, hospitals, infrastructure, benefits compare in the two countries. In addition we are not taking into consideration the amount of national income used for national defense. We also are not looking into the change in population which can be misleading, for example, if the GDP increases but population increases then everyone is getting a smaller percentage of the national income. If we do not look the growth of the population, we could think that the country is doing better by the national income increasing alone. Explain why hyperinflation has such a devastating impact on economies. Explain what it takes to stop hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless. It is devastating to the economy because the local currency loses...
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...through protectionist policies in the form of subsidies, tariffs, local content rules, quotas, export incentives and voluntary export restraints. Reasons for protection include “The Infant Industry argument” which states that some industries in a given country may develop a comparative advantage if only they are sheltered from foreign competition for a while, by means of temporary protection. So if in the future, the infant industries ‘grow up’ and form a comparative advantage, the domestic economy will gain access to a larger demand market, creating an injection into the economy, resulting in increased economic activity and employment. The domestic protection argument states that free trade and increased global competition can result in structural unemployment. Therefore, it has become apparent that infant industries need to be protected, dumping prevented, domestic employment sustained and the defense and self sufficiency of a nation ensured. The infant industry argument outlines the need for protection in order to establish industries that can form a comparative advantage in the future, if sheltered from competition for a little while. This ultimately leads to a...
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...business should respond to these influences. Political – these factors have a direct impact on the way a business operates. Decisions made by government affect our everyday lives and can come in the form of policy or legislation. The government’s introduction of a statutory minimum wage affects all businesses, as do consumer and health and safety laws and so on. Economical – businesses are affected by these factors nationally and globally. Interest rate policy and fiscal policy will have to be set accordingly. Within the UK the climate of the economy dictates how consumers may behave within society. Whether an economy is in a boom, recession or recovery will also have an effect on consumer confidence and behaviour. An economy that is booming is characterised by certain variables. Unemployment is low, job confidence is high, and because of this confidence spending by consumers is also high. This has an impact on most businesses. Organisations have to be able to keep up with the increased demand if they are to increase turnover. An economy that is in a recession is characterised by high unemployment and low confidence. Because of high unemployment spending is low, confidence about job security is also low. Businesses face a tough time, consumers will not spend because of low disposable income. Many businesses start cutting back on costs i.e. labour, introduce shorter weeks and cut back on advertising to save...
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...FINAL EXAMINATION Name of Student: ________________________________________________________ Student Number: ________________________________________________________ INSTRUCTIONS: This exam is in two parts. PART A (multiple choice questions) is to be answered on the examination paper itself. PART B should be answered in the exam book provided. Print your name clearly and give your normal signature and student number above and on the cover of the exam book(s) used. PART A: Multiple Choice Questions (30%) 1. Market supply curves tend to be more price elastic if the time period is long rather than short because— a. Firms are better able to adapt their output rates to price changes in the long run. b. External economies will be realized. c. Consumers are better able to find substitute goods. d. Input prices would be expected to increase with the length of the time period. e. Economic profits are reduced to zero in the long run. Marginal product exceeds average product when— a. Total product is increasing. b. Average product is increasing. c. Average product is decreasing. d. a and b. e. a and c. A frequently cited reason for increasing returns to scale is— a. Increased input prices. b. Greater specialization. c. External diseconomies. d. Larger fixed costs with a larger plant size. e. Difficulty of managing a huge enterprise. 2. 3. C5, Economic Environment of Business, Final Examination, page 1 of 8 1 4. In determining whether to add an additional flight to...
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