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Flashcards in Chapter 13 Deck (31)
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0
Q

occurs when industries slow or shut down for a season or make seasonal shifts in their production schedules.

A

Seasonal unemployment

1
Q

occurs when people take time to find a job

A

Frictional unemployment

2
Q

occurs when workers’ skills do not match the jobs that are available.

A

Structural unemployment

3
Q

5 major causes of structural unemployment:

A
The development of new technology.
The discovery of new resources.
Changes in consumer demand.
Globalization 
Lack of education.
4
Q

unemployment that rises during economic downturns and falls when the economy improves.

A

Cyclical unemployment

5
Q

the percentage of the nation’s labor force that is unemployed.

A

Unemployment rate

6
Q

the level of employment reached when no cyclical unemployment exists.

A

Full employment

7
Q

working at a job for which they are over-qualified, or working part-time when they desire full-time work.

A

Underemployment

8
Q

person who wants a job but has given up looking.

A

Discouraged worker

9
Q

a general increase in prices.

A

Inflation

10
Q

the ability to purchase goods and services.

A

Purchasing power

11
Q

measurement that shows how the average price of a standard group of goods changes over time.

A

Price index

12
Q

price index determined by measuring the price of a standard group of goods meant to represent the “market basket” of a typical urban consumer

A

Consumer price index

13
Q

a representative collection of goods and services.

A

Market basket

14
Q

the percentage rate of change in price level over time.

A

Inflation rate

15
Q

the rate of inflation excluding the effects of food and energy prices.

A

Core inflation rate

16
Q

inflation that is out of control.

A

Hyperinflation

17
Q

too much money in the economy causes inflation.

A

Quantum theory

18
Q

inflation occurs when demand for goods and services exceeds existing supplies

A

Demand pull theory

19
Q

inflation occurs when producers raise prices in order to meet increased costs.

A

Cost push theory

20
Q

the process by which rising wages cause higher prices, and higher prices cause higher wages.

A

Wage price spiral

21
Q

income that does not increase even when prices go up.

A

Fixed income

22
Q

a sustained or drop in the price level.

A

Deflation

23
Q

the income level below which income is insufficient to support a family or household.

A

Poverty threshold

24
Q

the percentage of people who live in households with income below the official poverty threshold.

A

Poverty rate

25
Q

how the nation’s total income is distributed among its population

A

Income distribution

26
Q

government-issued coupons that recipients exchange for food

A

Food stamps

27
Q

illustrates income distribution

A

Lorenz curve

28
Q

area where companies can locate free of certain state, local, and federal taxes and restrictions.

A

Enterprise zones

29
Q

federal funds given to the states in lump sums.

A

Block grant

30
Q

program requiring work in exchange for temporary assistance.

A

Workfare