Chapter 13: Economic Challenges Flashcards

(34 cards)

1
Q

unemployment that occurs when people take time to find a job

A

frictional employment

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2
Q

unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season

A

seasonal employment

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3
Q

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

A

structural employment

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4
Q

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

A

cyclical unemployment

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5
Q

Four Types of Unemployment

A

frictional, seasonal, structural, cyclical

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6
Q

Five major causes of structural unemployment

A
the development of new technology
the discovery of new resources
changes in consumer demand
globalization
lack of education
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7
Q

composed of civilian’s 16 or older who have a job or are actively looking for a job

A

the labor force

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8
Q

the level of employment reached when there is no cyclical unemployment

A

full employment

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9
Q

working at a job for which one is over-qualified, or working part time when full time work is desired

A

underemployed

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10
Q

works who want a job but have given up looking

A

discouraged workers

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11
Q

a general increase in prices

A

inflation

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12
Q

the ability to purchase goods and services

A

purchasing power

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13
Q

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

A

price index

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14
Q

a 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

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15
Q

the percentage rate of change in price level over time

A

inflation rate

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16
Q

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

A

core inflation rate

17
Q

inflation that is our of control

A

hyperinflation

18
Q

theory that too much money in the economy causes inflation

A

quantity theory

19
Q

theory that inflation occurs when demand for goods and services exceeds existing supplies

A

demand-pull theory

20
Q

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

A

cost-push theory

21
Q

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

A

wage-price spiral

22
Q

Three Effects of Inflation

A

purchasing power
income
interest rates

23
Q

income that does not increase even when prices go up

24
Q

a sustained drop in the price level

25
the income level below which income is insufficient to support a family or household
poverty threshold
26
the percentage of people who live in households with income below the official poverty line
poverty rate
27
Four factors affecting the poverty rate
race and ethnic origin type of family age residence
28
Causes of Poverty (5)
``` lack of education location racial and gender discrimination economic shifts shifts in family structure ```
29
how the nation's total income is distributed among its population
income distribution
30
government issued coupons that recipients exchange for food
food stamps
31
the curve that illustrates income distribution
Lorenz curve
32
area where companies can locate free of certain local, state, and federal taxes and restrictions
enterprise zone
33
federal funds given to the states in lump sums
block grant
34
a program requiring work in exchange for temporary assisstance
workfare