Economics Ch. 14 Cassarino edited

Ace your homework & exams now with Quizwiz!

Unemployment Rate

# of unemployed persons divided by the total # of persons in the civilian labor force

To an economist, full employment is reached when the unemployment rate drops below....

4.5%

recession

6 months (2 quarters) of declining GDP

poverty guidelines

annual dollar amounts used to evaluate the money income that families and unrelated individuals receive

earned income tax credit

credit or cash to low income workers

An assembly line worker in an automobile plant is laid off during a recession. She is...

cyclically Unemployed

to calculate the inflation rate, economists

divide the change in the price level by the beginning price level and multiply by 100

welfare

economic and social programs that provide regular assistance from the government or private agencies because of need

expansion

economy begins to grow again - until a new peak

reasons for income inequality

education, wealth, discrimination

three theories on the cause of inflation

government deficit, wage-price spiral, excessive monetary growth

food stamps

government-issued coupons that can be redeemed for food

Lorenz curve

graph that illustrates how much the actual distribution of income varies from an equal distribution

enterprise zones are set up to

help start-up businesses get going in run-down or depressed areas

peak

highest point in the business cycle when the economy is booming

an individual is living in poverty if

his or her income is below a certain level

creeping inflation

inflation in the range of 1 to 3 percent per year

hyperinflation

inflation in the range of 500 percent a year and above

galloping inflation

intense inflation that can go as high as 100 to 300 percent per year

trough

lowest point in the business cycle

full employment

lowest possible unemployment rate with the economy growing and factors of production are efficient

automation

mechanical or other processes reduce the need for workers

Structural Unemployment

occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills

technological Unemployment

occurs when workers with less skills, talent, or education are replaced by machines that do their jobs

per capita

per person

unemployed

person who wants to work but cannot find a job

workfare

program that requires welfare recipients to provide labor in exchange for benefits

gross domestic product (GDP)

total value of all final goods and services produced in a country in one year

Frictional Unemployment

unemployment caused by workers who are "between jobs"

Cyclical Unemployment

unemployment directly related to swings in the business cycle

When a construction worker cannot work because of a winter snowstorm, he is...

seasonally unemployed

business cycle

swings up and down in the real GDP

A telephone receptionist loses his job when a computerized voice mail system is intstalled at his office. He is...

technologically unemployed

three consequences of inflation

the dollar buys less, speculation increases, the distribution of income is altered


Related study sets

Ap Bio Cell Structure Test Review

View Set

Intro to Supply Chain - Practice Exam 3 Q's

View Set