chap 13

Question 1

unemployment rate

Answer 1

is the percentage of the labor force that is jobless and looking for work

Question 2

underemployed

Answer 2

are part-time workers who want to work full-time or people working below their skill level.

Question 3

full-employment

Answer 3

means no unemployment caused by decreased economic activity.

Question 4

frictional unemployment

Answer 4

is temporary unemployment of people changing jobs.

Question 5

seasonal unemployment

Answer 5

is unemployment linked to seasonal work.

Question 6

structural unemployment

Answer 6

is when jobs exist but do not match the skills of available workers.

Question 7

cynical unemployment

Answer 7

is unemployment caused by a part of the business cycle with decreased economic activity

Question 8

poverty

Answer 8

is the condition where a person’s income and resources do not allow him or her to achieve a minimum standard of living.

Question 9

poverty threshold

Answer 9

is the minimum income needed to pay for the basic expenses of living.

Question 10

poverty rate

Answer 10

the percentage of people living in households that have incomes below the poverty threshold.

Question 11

income distribution

Answer 11

the way income is divided among people

Question 12

income inequality

Answer 12

is the unequal distribution of income

Question 13

lorenz curve

Answer 13

is a curve that shows the degree of income inequality in a nation.

Question 14

welfare

Answer 14

is government economic and social programs that provide assistance to the needy

Question 15

workfare

Answer 15

is a program that requires welfare recipients to do some kind of work

Question 16

inflation

Answer 16

is a sustained rise in the general price level or a fall in the purchasing power of money.

Question 17

consumer price index (CPI)

Answer 17

is a measure of changes in the prices of goods and services commonly purchased by consumers

Question 18

producer price index (PPI)

Answer 18

is a measure of changes in the prices of goods and services commonly purchased by consumers

Question 19

inflation rate

Answer 19

is the rate of change in prices over a set period of time

Question 20

hyperinflation

Answer 20

is a rapid, uncontrolled rate of inflation in excess of 50 percent per month

Question 21

deflation

Answer 21

is a decrease in the general price level.

Question 22

demand-pull inflation

Answer 22

results when total demand rises faster than the production of goods and services.

Question 23

cost-push inflation

Answer 23

results when increases in the costs of production push up prices.

Question 24

wage-price spiral

Answer 24

is a cycle that begins with increased wages, which lead to higher production costs, which in turn result in higher prices, which result in demands for even higher wages.