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Question 3 (10 marks) Consider the population of a small country, assuming that the number of people in each category is as follows: total population

Question 3 (10 marks)

Consider the population of a small country, assuming that the number of people in each category is as follows:

total population

1,200

children under 16 years old

200

elderly retired people

300

full-time students

20

full-time homemakers

30

people working full time

420

people working part time

120

people not working but seeking employment

60

people not working but have given up seeking employment

50

  1. Define the different types of unemployment. (2 marks)
  2. Identify the type of unemployment in the following situations:

+ Jobs are available in Western Australia, but an unemployed worker living in NSW cannot move to WA because of family responsibilities.

+ Demand for output in the Australia has fallen due to falling incomes that result from job layoffs caused by recession.

+An unemployed mother lives in the central city of Sydney and lacks transportation to take her to the suburbs where jobs are available.

+A University student graduates and finds that it takes a few months before finding a job.

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