Download Chapter 13 vocabulary - Econ

Attitude
Name: __________________________
Block: __________________________
Chapter 13 vocabulary
1. Frictional unemployment-
unemployment that occurs when people take time to find a job
2. Seasonal unemploymentunemployment that occurs as a result of harvest schedules or
vacations, or when industries slow or shut down for a season
3. Structural unemploymentjobs that are available
unemployment that occurs when workers’ skills do not match the
4. Cyclical unemploymentwhen the economy improves
unemployment that rises during economic downturns and falls
5. Census-
an official count of the population
6. Unemployment rate-
the percentage of the nations’ labor force that is unemployed
7. Full employmentunemployment
the level of employment reached when there is no cyclical
8. Underemployedworking at a job for which one is over-qualified or working
part-time when full-time work is desired
9. Discouraged worker-
a person who wants a job but has given up looking
10. Inflation-
a general increase in prices
11. Purchasing power-
the ability to purchase goods and services
12. Price indexa measurement that shows how the average price of a standard
group of goods changes over time
13. Consumer price index (CPI)- 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
14. Market basket-
a representative collection of goods and services
15. Inflation rate-
the percentage rate of change in price level over time
16. Core inflation rateprices
the rate of inflation excluding the effects of food and energy
17. Hyperinflation-
inflation that is out of control
18. Quantity theory-
theory that too much money in the economy causes inflation
19. Demandpull theory- theory that inflation occurs when demand for goods
and services exceeds existing supplies
Attitude
20. Cost-push theoryto meet increased costs
Name: __________________________
Block: __________________________
theory that inflation occurs when producers raise prices in order
21. Wageprice spiral- the process by which rising wages cause higher
prices and higher prices cause higher wages
22. Fixed income-
income that does not increase even when prices go up
23. Deflation-
a sustained drop in the price level
24. Poverty thresholdfamily or household
the income level below which income is insufficient to support a
25. Poverty ratethe percentage of people who live in households with income
below the official poverty line
26. Income distribution-
how the nation’s total income is distributed among its population
27. Food stamps-
government- issued coupons that recipients exchange for food
28. Lorenz curve-
the curve that illustrates income distribution
29. Enterprise zonefederal taxes and restrictions
area where companies can locate free of certain local, state and
30. Block grant-
federal funds given to the states in lump sums
31. Workfare-
a program requiring work in exchange for temporary assistance