Hand Outs In Econ.docx

What is 'Unemployment' Unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force. Next Up Unemployment Rate Natural Unemployment Continuing Claims Full Employment BREAKING DOWN 'Unemployment' While the definition of unemployment is clear, economists divide unemployment into many different categories. The broadest two categories of unemployment are voluntary and involuntary unemployment. When unemployment is voluntary, it means that a person has left his job willingly in search of other employment. When it is involuntary, it means that a person has been fired or laid off and now must look for another job. Digging deeper, unemployment, both voluntary and involuntary, is broken down into three types.

Frictional Unemployment Frictional unemployment arises when a person is in-between jobs. After a person leaves a company, it naturally takes time to find another job, making this type of unemployment short-lived. It is also the least problematic from an economic standpoint. Arizona, for example, has faced rising frictional unemployment in May of 2016, due to the fact that unemployment has been historically low for the state. Arizona citizens feel confident leaving their jobs with no safety net in search of better employment.

Cyclical Unemployment Cyclical unemployment comes around due to the business cycle itself. Cyclical unemployment rises during recessionary periods and declines during periods of economic growth. For example, the number of weekly jobless claims in the United States has slowed in the month of June, as oil prices begin to rise and the economy starts to stabilize, adding jobs to the market.

Structural Unemployment Structural unemployment comes about through technological advances, when people lose their jobs because their skills are outdated. Illinois, for example, after seeing increased unemployment rates in

May of 2016, seeks to implement "structural reforms" that will give people new skills and therefore more job opportunities.

Differences in Theories of Unemployment Many variations of the unemployment rate exist with different definitions concerning who is an "unemployed person" and who is in the "labor force." For example, the U.S. Bureau of Labor Statistics' commonly cites the "U-3" unemployment rate as the official unemployment rate, but this definition of unemployment does not include unemployed workers who have become discouraged by a tough labor market and are no longer looking for work. Additionally, various schools of economic thought differ on the cause of unemployment. Keynesian economics, for example, proposes that there is a "natural rate" of unemployment even under the best economic conditions. Neoclassical economics, on the other hand, postulates that the labor market is efficient if left alone but that various interventions, such a minimum wage laws and unionization, put supply and demand out of balance.

UNEMPLOYMENT occurs when a person who is actively searching for employment is unable to find work. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force.

Unemployment is often used as a measure of the health of the economy. There are three types of unemployment frequently referenced in economics, 1. Structural Unemployment- Changes occur in market economies such that demand increases for some jobs skills and decreases for others. For example, the invention of the automobile increased demand for automobile mechanics and decreased demand for horse shoe makers. ·2. Frictional Unemployment- This occurs when workers are voluntarily between jobs. This can take time as the individual searches for a better job, a new location, or other factors that can delay employment. ·3. Cyclical Unemployment- This occurs due to downturns in overall business activity. When business cycles are at their peak, cyclical unemployment will be low. If the business cycle is low, cyclical unemployment will rise. The natural rate of unemployment is that amount of unemployment that occurs naturally due to imperfect information and job shopping. It is the rate of unemployment that is expected when an economy is operating at full capacity. At this time in the U.S., the natural rate of unemployment is considered to be about 5%.

Difference Between Economic Growth and Economic Development November 5, 2015 By Surbhi S 5 Comments

Economic Growth refers to the rise in the value of everything produced in the economy. Conversely, Economic Development is defined as the increase in the economic wealth of a country or a particular area, for the welfare of its residents. People often get confused between these two terms easily, but there is a difference. Here, you should know that economic growth is an essential but not the only condition for economic development. In this article, you will find all the substantial differences between economic growth and economic development.

Content: Economic Growth Vs Economic Development 1. Comparison Chart 2. Definition 3. Key Differences 4. Example 5. Conclusion Comparison Chart

BASIS FOR COMPARISON

ECONOMIC GROWTH

Meaning

Economic Growth is the positive change in the real output of the country in a particular span of time.

Econom improve

Concept

Narrow

Broad

Scope

Increase in the indicators like GDP, per capita income etc.

Improv

Term

Short term process

Long te

Applicable to

Developed Economies

Develop

How it can be measured?

Upward movement in national income.

Upward

Which kind of changes are expected?

Quantitative changes

Qualita

Type of process

Automatic

Manual

When it arises?

In a certain period of time.

Continu

Definition of Economic Growth Economic Growth is defined as the rise in the money value of goods and services produced by all the sectors of the economy per head during a particular period. It is a quantitative measure that shows the increase in the number of commercial transactions in an economy. Economic growth can be expressed in terms of gross domestic product (GDP) and gross national product (GNP), that helps in measuring the size of the economy. It lets us compare in absolute and percentage change, i.e. how much an economy has progressed since last year. It is an outcome of the increase in the quality and quantity of resources and advancement of technology. Definition of Economic Development

Economic Development is defined as the process of increase volume of production along with the improvement in technology, a rise in the level of living, institutional changes, etc. In short, it is the progress in the socio-economic structure of the economy. Human Development Index (HDI) is the appropriate tool to gauge the development in the economy. Based on the development, the HDI statistics rank countries. It considers the overall development in an economy regarding the standard of living, GDP, living conditions, technological advancement, improvement in self-esteem needs, the creation of opportunities, per capita income, infrastructural and industrial development and much more.

Key Differences Between Economic Growth and Economic Development The fundamental differences between economic growth and development are explained in the points given below: 1. Economic growth is the positive change in the real output of the country in a particular span of time economy. Economic Development involves a rise in the level of production in an economy along with the advancement of technology, improvement in living standards and so on. 2. Economic growth is one of the features of economic development. 3. Economic growth is an automatic process. Unlike economic development, which is the outcome of planned and result-oriented activities. 4. Economic growth enables an increase in the indicators like GDP, per capita income, etc. On the other hand, economic development enables improvement in the life expectancy rate, infant mortality rate, literacy rate and poverty rates. 5. Economic growth can be measured when there is a positive change in the national income, whereas economic development can be seen when there is an increase in real national income. 6. Economic growth is a short-term process which takes into account yearly growth of the economy. But if we talk about economic development it is a long term process.

7. Economic Growth applies to developed economies to gauge the quality of life, but as it is an essential condition for the development, it applies to developing countries also. In contrast to, economic development applies to developing countries to measure progress. 8. Economic Growth results in quantitative changes, but economic development brings both quantitative and qualitative changes. 9. Economic growth can be measured in a particular period. As opposed to economic development is a continuous process so that it can be seen in the long run. Example To understand the two terms economic growth and economic development, we will take an example of a human being. The term growth of human beings simply means the increase in their height and weight which is purely physical. But if you talk about human development, it will take into account both the physical and abstract aspects like maturity level, attitudes, habits, behaviour, feelings, intelligence and so on. In the like manner, growth of an economy can be measured through the increase in its size in the current year in comparison to previous years, but economic development includes not only physical but also non-physical aspects that can only be experienced like improvement in the lifestyle of the inhabitants, increase in individual income, improvement in technology and infrastructure, etc. Conclusion After the above discussion, we can say that economic development is a much bigger concept than economic growth. In other words, the economic development includes economic growth. As the former uses various indicators to judge the progress in an economy as a whole, the latter uses only specific indicators like gross domestic product, individual income etc.

Climate Change and Global Warming Global warming and climate changeis looked at in this section of the global issues web site. Introduced are some of the effects of climate change. In addition, this section attempts to provide insights into what governments, companies, international institutions, and other organizations are attempting to do about this issue, as well as the challenges they face. Some of the major conferences in recent years are also discussed. 32 articles on “Climate Change and Global Warming” and 1 related issue: Climate Change And Global Warming Introduction Last updated Sunday, February 01, 2015. The climate is changing. The earth is warming up, and there is now overwhelming scientific consensus that it is happening, and human-induced. With global warming on the increase and species and their habitats on the decrease, chances for ecosystems to adapt naturally are diminishing. Many are agreed that climate change may be one of the greatest threats facing the planet. Recent years show increasing temperatures in various regions, and/or increasing extremities in weather patterns. This section looks at what causes climate change, what the impacts are and where scientific consensus currently is.

Climate Justice And Equity For a number of years, there have been concerns that climate change negotiations will essentially ignore a key principle of climate change negotiation frameworks: the common but differentiated responsibilities. Realizing that greenhouse emissions remain in the atmosphere for a very long time, this principle recognizes that historically: • Industrialized nations have emitted far more greenhouse gas emissions (even if some developing nations are only now increasing theirs); • and

Rich countries therefore face the biggest responsibility and burden for action to address climate change;

• Rich countries therefore must support developing nations adapt—through financing and technology transfer, for example.