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31 terms

Ch.13 Economics Vocabulary

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workfare
a program requiring work in exchange for temporary assistance.
block grant
federal funds given to the states in lump sums.
enterprise zone
area where companies can locate free of certain local, state, and federal taxes and restrictions.
Lorenz Curve
the curve that illustrates income distribution.
food stamps
government-issued coupons that recipients exchange for food.
income distribution
how the nation's total income is distributed among its population.
poverty rate
the percentage of people who live in households with income below the official poverty line.
poverty threshold
the income level below which income is insufficient to support a family or household.
deflation
a sustained drop in the price level.
fixed income
income that does not increase even when prices go up.
wage-price spiral
the process by which rising wages cause higher prices, and higher prices cause higher wages.
cost-push theory
theory that inflation occurs when producers raise prices in order to meet increased costs.
demand-pull theory
theory that inflation occurs when demand for goods and services exceeds existing supplies.
quantity theory
theory that too much money in the economy causes inflation.
hyperinflation
inflation that is out of control.
core inflation rate
the rate of inflation excluding the effects of food and energy prices.
inflation rate
the percentage rate of change in price level over time.
market basket
a representative collection of goods and services.
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.
price index
a measurement that shows how the average price of a standard group of goods changes over time.
purchasing power
the ability to purchase goods and services.
inflation
a general increase in prices.
discouraged worker
a person who wants a job but has given up looking.
underemployed
working at a job for which one is overqualified, or working part-time when full-time work is desired.
full employment
level of employment reached when there is no cyclical unemployment.
unemployment rate
the percentage of the nation's labor force that is unemployed.
census
an official count of the population.
cyclical unemployment
unemployment that rises during economic downturns and falls when the economy improves.
structural employment
unemployment that occurs when workers' skills do not match the jobs that are available.
seasonal unemployment
unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season.
frictional unemployment
unemployment that occurs when people take time to find a job.