Ch 13. Economic challenges Flashcards
Type of employment that occurs when workers skills do not match those needed for the jobs Available
Structural unemployment
The shift from local to global markets as countries seek foreign trade and investment
Globalization
Type of unemployment that occurs as a result of harvest schedules vacations, or when industries make production schedule
Seasonal unemployment
Unemployment that rises during economic downturns and falls when the economy improves
Cyclical unemployment
The percentage of the nation’s labor force that is unemployed
Unemployment rate
The level of employment reached when there is no cyclical unemployment
Full employment
Working at a job for which one is over qualified or working part-time when full time work is desired
Underemployed
Someone who wants a job but has given up looking
Discouraged worker
A measurement that shows how the average price of a standard group of goods changes over time
Price index
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
Consumer price index
A representative collection of goods and services
Market basket
The percentage rate of change in price level over time
Inflation rate
The rate of inflation excluding the effects of food and energy prices
Core inflation rate
Inflation that is out of control
Hyperinflation
The theory that too much money in the economy causes inflation
Quantity theory
The process by which rising wages cause higher prices and higher prices cause higher wages
Wage-price spiral
Income that does not increase even when prices go up
Fixed income
A sustained drop in the price level
Deflation
The income level below which income is sufficient to support a family or house hold
Poverty threshold
The percentage of people who live households with income below the official poverty threshold
Poverty rate
The way which a Marion’s total income is distributed among its population
Income distribution
Government program that helps low income recipients to buy food
Food stamp program
Area where businesses can locate free of certain states local, and federal taxes and restrictions
Enterprise zone
Federal funds given to the states in lump sums
Block grants
A program requiring work in exchange for temporary government assistance
Workfare
Type of unemployment that occurs when people take time to find a job
Fictional unemployment
