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59 Cards in this Set
- Front
- Back
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Work primarily with hands; no specialized training needed
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Unskilled labor
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have enough skills to use basic machinery/technology
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semiskilled
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know a craft or trade can operate complex equipment
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skilled labor
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have the highest level of knowledge-based education or training
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professional labor
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How can one advance from one category of labor to another?
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more studying, education, knowledge, training, practice, "people skills", experience, abilities
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Favoritism toward family members
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nepotism
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Favoritism toward friends
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cronyism
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Worker and company meet to make a new contract
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collective bargaining
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the total value of all final goods and services produced in a particular economy, the dollar value of all final goods and services produced within a country's borders in a given year
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GDP
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Why the gender wage gap?
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Human capital differences, occupational differences, and discrimination
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What are some reasons for minority wage gap?
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The culture and family affects people decisions in life.
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What purchases are included in GDP?
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Total income, total spending on goods, final goods & services, current produced items.
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What is excluded in GDP?
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Intermediate goods, stocks, transfer payment, and secondhand sales.
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What are the components of GDP?
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consumption, investment, government purchase, net export
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* household spending
* largest portion |
consumption
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* capital goods (machines, tools, etc.)
* all construction * changes in inventories |
investment
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* local, state, and federal levels of spending
* public works, goods/services, salaries, etc. * not transfer payments (welfare, etc) |
Government purchases
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* NX = exports - imports
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net exports
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If GDP rises from year to year, it could be because of
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more production, higher prices
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What are some shortcoming of GDP?
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1) GDP does not consider a country's population
2) Non market transactions 3) Underground economic activity is excluded 4) GDP Ignores imprved quality 5) Leisure and work 6) distribution of output |
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______ illustrate the distribution of income in the economy
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Lorenz curve
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a measure of the market values of all goods and services produced by American in one year
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GNP
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determined by measuring the price of a standard group of goods meant to represent the typical "market basket" of a typical urban consumer
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CPI (consumer prince index)
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Measurement that shows how the average price of a standard group of goods changes over time
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Price Index
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representative collection of goods and services
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market basket
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a general increases in price
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inflation
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GDP measured in current prices
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nominal GDP
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GDP expressed in constant, or unchanging prices
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Real GDP
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How to calculate real GDP or nominal GDP
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Real GDP = nominal GDP / GDP prince index X 100
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What are the four business cycle?
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Peak, recession, trough, recovery/expansion
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* RGDP falls
* Unemployment rises * Consumer durables and capital goods are hit the hardest = less people |
Recession
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* RGDP at lowest levels
* Unemployment at highest levels |
Trough
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*RGDP rising
* Unemployment falling * Prices may rise |
Recovery/expansion
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how to calculate unemployment rate?
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U = jobless / labor force X 100
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Why is the unemployment rate understated?
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it is understated due to part time or discouraged workers
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What are the types of unemployment?
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Frictional, structural, seasonal, cyclical
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* qualified workers with transferable skills who change jobs
* new entrants |
frictional
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* Unemployment due to structural economic changes or wage disequilibrium
* Geographic industries shift * Worker's lack of required skills * Technological innovation and consumer preferences |
structural
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* workers laid off during slow months
* Unemployment rates are seasonally adjusted |
Seasonal
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* During recessions or times of slow macroeconomic demand
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Cyclical
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Which types of unemployment make up the NRU?
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Frictional and Structural
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decrease in the rate of inflation
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disinflation
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sustain drop in a price level
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deflation
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Out of control, very high inflation
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hyperinflation
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* What a bank pays you for your savings
* What a bank charges you on a loan |
nominal interest rate
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* NI adjusted for inflation
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Real Interest rate
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How to calculate real interest?
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RI = NI - Inflation rate
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* inflation robs real purchasing power from:
* those who are on fixed income * Savers earning no interests * savers/creditors earning less interest than less interest |
Losers
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debtors -Hyperinflation will wipe out your debt
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Winners
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Someone who starts working or continues to work for a firm while a labor union is engaged in a strike of the firm.
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scab
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An organized work stoppage intended to force an employer to address union demands
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strike
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An organized effort to reduce the sales of a particular good that's intended to punished the producer or seller.
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boycott
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A plant or factory that is closed temporarily, because it's owners are trying to gain a negotiating advantage over the employees' union.
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lockout
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labor union on strike holding signs in front of the company
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picketing
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a settlement technique in which neutral mediator meets with each side to try to find a solution that both side will accept.
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mediation
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neutral third party review the case and imposes a decision that is legally binding for both side
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arbitration
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a theory that states...higher education = higher wages
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learning effect
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completion of college shows that the job applicant is smart and has the ability to do the job
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screening effect
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measures that ban mandatory union membership
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right to work laws
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