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Economists use the concept ''full employment'' What does it mean?
Wiki User
∙ 11y ago
"Full Employment" is used to define the ideal situation when all resources of an economy (capital (human and physical), land, labour, etc.) are fully put to use to produce output. But it necessarily may not mean the maximum output the economy may produce, because all maybe employed but not used to its fullest potential. But I believe its a classical concept and makes analysis easier but now we have models that take unemployment into consideration.
Wiki User
∙ 11y ago
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Why isn't full employment the same as zero unemployment?
Full employment doesn't mean that there is zero unemployment. Full employment only means that the economy is operating at full employment because there is only structural unemployment, frictional unemployment, and seasonal unemployment. Remaining unemployment is cyclical. Even when an economy is working properly, it will experience frictional, seasonal, and structural unemployment. (gp)
What do economists mean by the term sticky wage?
it is par day wage
Economists use the term marginal utility to mean?
additional satisfaction gained by the consumption of one more unit of a good.
When an economy is operating under conditions of full employment why will the production of more of commodity A mean the production of less of commodity B?
It will occur because of the movement of workers from the production of one commodity to the other. Full employment means that there are no unemployed workers available. In this case, the hypothetical economy is a closed system. No new workers, materials, production facilities, money or markets can be introduced. Because it is operating under conditions of full employment, all the workers, raw materials, factories, money and customers are being fully utilized. Therefore, if we decide we need more Commodity A we have to steal workers, materials and production space from that allocated to Commodity B.
What do you mean by consumption?
Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally, consumption is defined in part by comparison to production. But the precise definition can vary because different schools of economists define production quite differently. According to mainstream economists, only the final purchase of goods and services by individuals constitutes consumption, while other types of expenditure - in particular, fixed investment, intermediate consumption and government spending - are placed in separate categories. See consumer choice. Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e.g. the selection, adoption, use, disposal and recycling of goods and services).
What does the term full employment mean?
"Full employment" - people who want to work have full-time jobs. (by Solomon Zelman)
What does full employment mean?
There is no cyclical unemployment.
Why is there unemployment even when the economy is at full-employment?
Because fullemployment doesn't really mean "FULL" employment, It basically means those really looking for a job are employed. At full employment there is roughly 4-6% of unemployment.
Why isn't full employment the same as zero unemployment?
Full employment doesn't mean that there is zero unemployment. Full employment only means that the economy is operating at full employment because there is only structural unemployment, frictional unemployment, and seasonal unemployment. Remaining unemployment is cyclical. Even when an economy is working properly, it will experience frictional, seasonal, and structural unemployment. (gp)
What does classied employee mean?
Full time employment that is subject to civil service rules
When economists say that people act rationally in their self interest they mean that individuals what?
When economists say that people act rationally in their self interest they mean that
Why isn't full unemployment the same as zero unemployment?
Full employment doesn't mean that there is zero unemployment. Full employment only means that the economy is operating at full employment because there is only structural unemployment, frictional unemployment, and seasonal unemployment. Remaining unemployment is cyclical. Even when an economy is working properly, it will experience frictional, seasonal, and structural unemployment. (gp)
What do economists mean by longterm?
answer- longer than a year
What is the point where the overall economic conditions are all operating at almost 100 of employment?
This point is known as full employment, where the economy is operating at maximum employment levels. At full employment, nearly all individuals who are willing and able to work are employed, leading to a lower unemployment rate and potentially higher wages. However, it is important to note that achieving full employment does not necessarily mean zero unemployment due to factors such as frictional or structural unemployment.
What is the full form of UCmas?
Universal Concept of Mental Arithmetic System
What do economists mean by the term sticky wage?
it is par day wage
What does full of incongruity mean?
Being full of incongruity means having inconsistencies or contradictions that do not align with each other. This can lead to a lack of harmony or agreement within a situation or concept.
