Download Unit 4 Study Guide

Unit 4 Study Guide 1. In the _________________ process, a third party reviews a case and renders a legally binding decision. 2. An organized work stoppage intended to force an employer to address union demands is called what? 3. What is the difference between mediation and arbitration? (pgs 233 and 234)
4. What is the labor force? 5. Who does the government include in its definition of the labor force? 6. What are the categories of labor? What are some examples of jobs in each category? How
can one advance from one category of labor to another?
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What is equilibrium wage? What is a labor union? How does education affect wages? How does discrimination affect wages? What is GDP? What is real GDP? What are the components of GDP? What are some shortcomings of GDP? Why is GDP not a perfect picture of the health of a society? 14. ___________________ are goods used in the production of final goods. 15. Describe the business cycle (label each part of the business cycle and describe what happens to the economy in each part). 16. A prolonged economic contraction is called what? 17. Know what situations can lead the economy into different phases of the business cycle. 18. Economists use the term __________________________ to describe the dollar value of all final goods and services produced within a country’s borders in a given year. 19. The _________________ is the average of all prices in the economy? 20. What is a price index? What does CPI stand for? What is its purpose? 21. What is a market basket? 22. How does inflation affect purchasing power? 23. What is the percentage change formula? 24. The price of a 22” black and white tv in 1950 was $250. If the CPI for 1950 is 24 and the CPI for 2011 is 223.5, what would the cost of that tv be today? 25. Translate the following number changes into percentages. a. From 15 to 20 b. From 20 to 15 26. Given the following information about Mystery Price Index X, answer the following questions. (The index in the base year is set to 100) (The price of the market basket (mb) is $50). Use the following formula. (mb current year/mb base year) x 100 = price index a. What is the price index in year 2 if mb in year 2 is $70? b. What is the price index in year 5 if mb in year 5 is $320? c. By what percentage did mb increase from the base year to year 5? d. If the price index in year 4 was 145, what is mb in year 4? 27. Use the GDP Price Index to answer the following questions. (nominal GDP/GDP Price index) x 100 = Real GDP a. Find the real GDP if nominal GDP is $4, 567 billion and the GDP Price Index is 78.5. Did you inflate or deflate nominal GDP? 28. Know how to calculate the rate of unemployment. Why is the unemployment rate
understated?
29. Know how to calculate the rate of unemployment. Why is the unemployment rate understated? What is the natural rate of unemployment (NRU)? Which types of unemployment make up the NRU? What does “full employment” mean? What is the NRU of the United States
believed to be? 30. What are the types of unemployment? Know examples of each.