Economics

Question One

Although it is imperative to not that recession affects all the people in a given economy negatively, economists have established that recession can be gender-biased. Lehr observes that the recession in the year 2008 exposed American men to the loss of over 700,000 jobs while their women counterparts gained nearly 300,000 jobs over the same period (Lehr, 1). In addition to the gain of jobs, the American women experienced stagnant pays while the men’s pay significantly decreased. The bias is due to the fact that men concentrate in industries that are highly vulnerable to recession as compared to the women (Lehr 1). Therefore, in order to alleviate the bias both women and men should be allowed to explore the various industries equitably.

Question Two

Unemployment feature in different types: frictional unemployment occurs as a result of people moving between jobs. This may result from the accrued benefits that the employees associate with certain jobs; structural unemployment results from the mismatch of specified skills in a given job market for instance, when there exist difficulties in learning new but required skills, the job market will experience structural unemployment. Additionally, if an industry experiences labor intensive technological change which, the employees find difficult to cope with, then the job market will experience structural unemployment; Classical unemployment, which mainly occur in a labor competitive market, is paramount when the wages go beyond the market equilibrium. In this regard, the industry will face classical unemployment following the fact that the wages are restricted in terms of downfall while the employers are reluctant in servicing their employees with the demanded wage rates. The gap that exists enables the occurrence of classical unemployment. When the economy experiences recession, frictional, structural, and classical types of unemployment increase significantly. However, when the economy experiences recovery, the three types of unemployment decrease significantly.

Question Three

The reason behind the government’s exposure in allowing oil fields to decline is the fact that the government does not employ sufficient technological investments necessary for the proper extraction of the oil that will meet the required demands of the oil industry, thereby resulting in the decrease of oil supply, which in effect enforces the increasing rates of oil prices. The alternative in this case is an enhanced technological advancement in the oil fields that will meet the demands of the market.

This entry was posted in Economics Essay and tagged , , , , . Bookmark the permalink.