ECON 2105 - Final Exam Chapter 8

Economics 2105 with Kim at Georgia State University

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Created: 2011-12-03
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Employment

is the number of people currently

employed in the economy, either full time or part

time.

Unemployment

is the number of people who are

actively looking for work but aren’t currently

employed.

The labor force

is equal to the sum of employment

and unemployment.

The labor force participation rate

is the percentage of the population aged 16 or older that

is in the labor force. Equation is labor force/population age 16 and older X 100

Unemployment rate

is the percentage of the total number of people in the labor force who are unemployed. Equation is # of unemployed workers/labor force X 100.

Discouraged workers

nonworking people who are capable of working but have given up looking for a job given the state of the job market.

Marginally attached workers

would like to be employed and have looked for a job in the recent past but are not currently looking for work.

Underemployment

is the number of people who work part time because they cannot find full-time jobs.

Job search

Workers who spend time looking for employment

are engaged in

Frictional unemployment

is unemployment due to the time workers spend in job search.

Structural unemployment

is unemployment that results when there are more people seeking jobs in a labor market than there are jobs available at the current wage.

Minimm wages

a government-mandated floor on the price of labor.

Unions

can often win higher wages from employers than the market would have otherwise provided when workers bargained individually.

Efficiency Wages

wages that employers set above the equilibrium wage rate as an incentive for better performance.

Side effects of government policies

public policies designed to help workers who lose their jobs; these policies can lead to structural unemployment as an unintended side effect.

Natural rate of unemployment

is the normal unemployment rate around which the actual unemployment rate fluctuates. It is the unemployment rate that arises from the effects of frictional plus structural unemployment.

Cyclical Unemployment

is a deviation in the actual rate of unemployment from the natural rate.

Natural Unemployment equation

Natural unemployment = Frictional unemployment

+ Structural unemployment

Actual Unemployment equation

Actual unemployment = Natural unemployment +

Cyclical unemployment

real wage

is the wage rate divided by the price level.

Real income

is income divided by the price level.

Shoe-leather costs

are the increased costs of transactions caused by inflation.

Menu cost

is the real cost of changing a listed price

Unit-of-account costs

arise from the way inflation makes money a less reliable unit of measurement.

Nominal interest rate

is the interest rate expressed in dollar terms.

Real Interest rate

is the nominal interest rate minus the rate of inflation.

Disinflation

is the process of bringing the inflation rate down.

About this deck

By: Brittany Love
Created: 2011-12-03
Size: 27 flashcards
Views: 31

About StudyBlue

“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
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