unemployment, poverty, and inflation Flashcards
1
Q
unemployment has a _____ of causes
A
variety
2
Q
some level of _______ is expected, even when an economy is healthy
A
unemployment
3
Q
closing or scaling back by large employers has major impact on
A
measuring unemployment
4
Q
unemployed can not buy as many _____ and ____
A
goods and services
5
Q
other local businesses may decrease output, or ___ ___ _____
A
lay off workers
6
Q
widespread unemployment across the country can reduce ________ and ____
A
production and GDP
7
Q
unemployment rate
A
percent of labor forces jobless and looking for work
8
Q
civilian labor force
A
people over 16 who are work, looking for work
9
Q
who determines unemployment rate
A
Bureau of Labor Statistics
10
Q
how do you find the unemployment rate
A
- divided number of unemployed workers by total in civilian labor force
- does not count discouraged who have stopped looking or underemployed
11
Q
underemployed
A
work part-time, want full-time, or work below skill level
12
Q
full employment
A
no unemployment caused by decreased economic activity
13
Q
always some degree of underemployment because
A
people relocate, look for better jobs, can’t find appropriate job
14
Q
what is the underemployment rate that is considered full employment in US
A
4 to 8
15
Q
why are their other underemployment rates in other countries
A
- they have different labor markets
- different economic policies
16
Q
types of unemployment
A
- frictional
- seasonal
- structural
- cyclical
17
Q
frictional unemployment
A
- temporary, experienced by people changing jobs
- not a threat to economic stability
- includes: childbearing parent returning to work, new college grad looking for first job, experienced workers who want to switch jobs
18
Q
seasonal unemployment
A
-due to seasonal work
19
Q
jobs exist but workers not qualified
A
structural employment
20
Q
as businesses become more efficient, require fewer workers
A
structural unemployment
21
Q
new industries requiring specialized education do not employ unskilled
A
structural unemployment
22
Q
change in consumer demand can shift type of workers needed
A
structural unemployment
23
Q
offshore outsourcing sometimes leaves people out of work
A
structural unemployment
24
Q
-demand for some jobs changes dramatically from season to season
A
seasonal unemployment
25
construction work falls off in winter, tourism parts at certain time of year (carries by region), migrant farm work drops off in winter (migrant families suffer)
seasonal unemployment
26
caused by decreased activity in business cycle
cyclical unemployment
27
employers lay off workers during low points in business cycle
cyclical unemployment
28
during recession hard to find new jobs since demand for labor drops
cyclical unemployment
29
unemployment period varies by type: average relatively short
cyclical unemployment
30
over _____ of unemployed find work in 5 weeks or less
1/3
31
impact of unemployment
- excessive, persistent unemployment inefficient- wastes human resources
- promotes inequality since lease experienced lose jobs first
- discourages workers who lose faith in ability to find good job
32
________ lose motivation to do good job
underemployed
33
fewer jobs means _____ opportunities to advance
fewer
34
poverty
lack of income, resources to have minimum standard of living
35
no universal ________ ___ _______ ; varies from country to country
standard for poverty
36
poverty threshold
official minimum income to pay for basic needs ; set by government
37
people considered in poverty if income falls _____ poverty threshold
below
38
poverty threshold is also called
poverty line
39
calculated based in costs of nutritious food, other necessities ; differ by size of household ; adjusted annually
poverty threshold
40
poverty rate
percent of people in households below poverty threshold; based on population as a whole
41
does or does not poverty hit all sectors of society equally
does not
42
most at risk for poverty
children, minorities, inner city, rural, and single-mother families
43
factors affecting poverty
- education
- discrimination
- demographic tends
- changing jobs
44
how does education affect poverty
the higher the level of education the higher the income
45
how does discrimination affect poverty
discrimination against minorities and women; they sometimes face wage discrimination, occupational segregation
46
how does demographic tends affect poverty
single-parent families have more economic problems
47
how does changing jobs affect poverty
change from manufacturing to service jobs has resulted in lower wages for low-skilled workers
48
income distribution
how income is divided among people in a nation
49
income inequality
unequal distribution of income ; some always exists
50
______ ______ shows degree of inequality in a nation
Lorenz curve
51
the more the Lorenz curve dips away from diagonal line...
the greater the inequality
52
welfare-economic, social programs providing social to the needy is an example of ...
antipoverty programs
53
some welfare-economic, social programs are criticized for...
wasting government funds, harming recipients
54
now government also uses what things for antipoverty programs (4)
tax breaks, grants, job training, self-help
55
____ _____ program gives cards, government deposits funds in account
food stamp
56
cards for food stamp programs can be used only to buy _______
food at grocery stoes
57
______ offers health care
Medicaid
58
Medicaid is funded by
federal and state governments
59
earned-income tax credit
refunds taxes from paychecks ; money usually spent in own communities, helping boost their economies
60
general anti poverty program that pays retirees, survivors, disabled
social security
61
general antipoverty program that is government health insurance for seniors
medicare
62
general antipoverty program that helps laid-off workers while looking for a job
unemployment insurance
63
general antipoverty programs funded by payroll taxes
social security and medicare
64
general antipoverty program that is mostly paid by taxes on employers
unemployment insurance
65
inflation
- sustained rise in the level of prices generally
| - sustained fall in purchasing power of money
66
consumer price index (CPI) measures
changes in prices of products
67
US gov surveys people to learn what they buy regularly which creates
- a "market basket" of about 400 typical products
- each month researchers current prices of these items
- compare prices to reference base year 1982 and 1984
68
producer price index (PPI) measures
changes in wholesale prices
69
PPI reflects
price producers get for goods; tied to a reference base
70
over 10,000 PPIs ...
for individual products and group of products
71
inflation rate
rate of change in prices over at set period of time
72
PPi tends to lead CPI as
indicator of inflation
73
types of inflation
- moderate rate of inflation
- creeping inflation
- galloping inflation
- hyperinflation
- deflation
74
moderate rate of inflation
between 1 and 2 percent per year
75
creeping inflation
moderate inflation over a period of time
76
galloping inflation
rapid increase
77
hyperinflation
over 50% per month
78
deflation
decrease in general price level; happens rarely
79
causes in inflation
demand-pull inflation and cost-push inflation
80
demand-pull inflation
total demand rises faster than production
81
cost-push inflation
increase in production costs push up price
82
if total demand rises faster than production (demand-pull inflation)...
it creates scarcity
83
during demand-pull inflation, producers need time to..
recognize demand, gear up for higher production
84
during lag period
demand pushes up prices for available products
85
too much money entering into circulation during lag period will..
drive up prices
86
when production cost increases (CPI)
producer make less profit
87
if demand is strong
may rise prices to maintain profits
88
cost-push inflation may be due to
higher price of materials and energy
89
_______ can be large part of
production costs
90
wage-price spiral
higher prices lead to higher costs which lead to higher prices which lead to higher wages
91
impact of inflation
decreasing value of the dollar , increasing interest rates , decreasing real returns of savings
92
rising consumer price index represents
declining value of the dollar
93
people on a fixed income are especially vulnerable to
inflation// decreasing value of dollar
94
each dollar a person, who is on a fixed income, has...
buys less every year
95
inflation helps people who borrow at a fixed rate of interest
pay debts with dollar that are worth less so repayments are smaller
96
lenders raise interest rates to
ensure profit on loans
97
businesses avoid borrowing to
expand or make capital improvements
98
consumers less likely to
finance high-priced items
99
monthly credit card payments go up as
interest rates rise
100
interest on savings tends to ______ during inflationary times
increase
101
although interest on savings tends to increase during inflationary times, rate of inflation tends to ....
outpace interest rates
102
inflation worries people about ...
drop in standard of living and retirement
