Chapter 7 Flashcards
Definition of economics
how the study of resources are expanded to fulfill the needs and wants of individuals and social groups
What is surplus?
something that remains above what is used or needed
What is a shortage?
when there is excess demand and limited supply
What is supply?
a quantity of something on hand or available, as for use
What is demand?
the quantity of a commodity or service wanted at a specified price and time
Population inflation impacts the most?
individuals or families living on fixed incomes
Difference in size of U.S. households than in past
2.6, slightly lower than in previous decades
What is nondurable good?
items that generally last for only a short time (3 yrs or less)
What is a durable good?
goods that have a life span of 3 or more years
Who are skippies?
school kids with purchasing power
teen participation in the marketplace
Desired unemployment rate
4%
What is frictional unemployment?
workers who have decided to leave one job and look for another
What is cyclical unemployment?
the increase in unemployment that occurs as the economy goes into a slowdown or recession
What is structural
unemployment caused by basic changes in the overall economy
