Chapter 13: Facing Economic Challenges Flashcards
percent of labor force jobless and looking for work
unemployment rate
people over 16 who are working, looking for work
civilian labor force
determines unemployment rate
- divides # of unemployed workers by total in civilian labor force
- does not count discouraged who have stopped looking or are underemployed
Bureau of Labor Statistics
work part-time, want full-time of works below skill level
underemployed
no unemployment caused by decreased economic activity
full employment
temporary unemployment, experienced by people changing jobs
frictional unemployment
unemployment due to seasonal work
seasonal unemployment
unemployment caused by jobs exist but workers are not qualified
structural unemployment
unemployment caused by decreased activity in business cycle
cyclical unemployment
give an example of frictional unemployment.
- stay-at-home mom/dad
- new college graduates looking for first job
- experienced workers who want to switch jobs
give an example of seasonal unemployment.
- construction workers
- tourism
- migrant farms
give an example of structural unemployment.
- new technologies replace workers
- require specialized education/training
- change in consumer demand
- offshore outsourcing
give an example of cyclical unemployment.
- employers lay off workers during low points in business cycles
- hard to find jobs during recession
what are the 4 impacts of unemployment?
- inefficient - wastes human resources
- promotes inequality
- fewer jobs = fewer opportunities to advance
- lose motivation, discourages workers who lose faith in ability to find a job
condition where a person’s income/resources do not allow them to achieve a minimum standard of living
poverty
the minimum income needed to pay for the basic expenses of living
poverty threshold (poverty line)
percentage of people living in households that have incomes below the poverty threshold
poverty rate
the way income is divided among people
income distribution
a curve that shows the degree of income inequality in a nation
Lorenz curve
government economic and social programs that provide assistance to the needy
welfare
a program that requires welfare recipients to do some kind of work
workfare
a sustained rise in the general price level or a fall in the purchasing power of money
inflation
a measure of changes in the prices of goods and services commonly purchased by consumers
consumer price index
measure of changes in wholesale prices
producer price index
the rate of change in prices over a set period of time
inflation rate
a rapid, uncontrolled rate of inflation in excess of 50 percent per month
hyperinflation
a decrease in the general price level
deflation
results when total demand rises faster than the production of goods/services
demand-pull inflation
results when increases in the costs of production push up prices
cost-push inflation
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
wage-price spiral
poverty rate is based on ______________
population as a whole
- does not hit all sectors of society equally
unequal distribution of income; some always exists
income inequality
