Ch 13 econ

general increase in prices

More education generally leads to more money

When the pool of workers shrinks, wages go down

Unemployment can never be too low

Hyperinflation leads to economic collapse

Children & young adults are among the largest groups living in poverty

The Lorenzo Curve shows the distribution of income in the US

an average of the price of goods in the economy

group of 2 or more people related by birth, marriage, or adoption living in the same housing unit

The unemployment rate is an indicator of the health of an economy

Inflation increases the value of money

states that too much money causes inflation

Full employment means almost everyone who wants a job has one

occurs when workers skills don't match jobs available

Which of the following is not where the effect of inflation is mainly seen?

With the invention of refrigerators, workers no longer needed to deliver ice, they experienced seasonal unemployment

The government spends millions on which of the following programs to reduce poverty?

The divorce rate in the US has caused more people to live in poverty

Low unemployment is often accompanied by a fall in inflation

states that inflation occurs when producers raise prices to meet increased costs

What is the worst type of inflation?

How do existing government policies deal with poverty?

states that inflation occurs when demand exceeds existing supply

If the market basket for 2019 is $200 and for 2020 is $330 what is the CPI?

The CPI market basket has 6 categories

the ability to purchase goods & services

all people living in a housing unit regardless of how they are related

Zero unemployment is the same as full employment

Occurs when people take time off to find a job

When rising costs cause higher prices and higher prices cause higher wages

Being underemployed means you are not working as much as you would like

It is possible to have 0% unemployment

There is no difference in the poverty level of single moms and two parent families

If you leave a job to care for a sick child, you are experiencing frictional unemployment

If the CPI for last year was 164 and this year it is 168. What is the inflation rate?

A discouraged worker is one who

occurs when unemployment rises during downturns and falls when the economy improves

occurs when industries shutdown or make shifts in production schedules

A family is considered poor if they can't live comfortably