Economy: Chapter 13

Area where companies can locate free of certain local, state, and federal taxes and restrictions: enterprise zone gated industrial park Lorenz zone development community

The percentage of the nation's labor force that is not employed: enterprise index employment ratio unemployment index unemployment rate

According to the demand-pull theory, what is responsible for inflation? Producers raise prices to meet existing demand. The economy is in a wage-price spiral. Too much money is in circulation. Demand for goods and services exceeds existing supply.

How has the distribution of income in the United States changed over the last 20 years? It has become more equal. The difference between the rich and poor has shrunk. It has become less equal. The difference between the rich and poor has grown. It became more equal for about 10 years but has become less equal. The difference between the rich and poor began to shrink, but then grew again. It has not changed appreciably. The difference between the rich and poor has remain about the same.

Inflation that rises steadily from month to month over a long period: chronic inflation deflation stagflation creeping inflation

Inflation that rises steadily from month to month over a long period: chronic inflation deflation stagflation creeping inflation

Inflation that remains low for a long time: chronic inflation deflation creeping inflation stagflation

Which is a result of unemployment that is very low? The few people who are unemployed stop looking for jobs. Wages drop below the level of minimum wage. Companies have difficulties recruiting workers. Companies stop looking for people to fill unfilled jobs.

According to the cost-push theory, what is responsible for inflation? Producers raise prices to meet increased costs. Demand for goods and services exceeds existing supply. Too much money is in circulation. The economy is operating as though there was a war.

How does the Bureau of Labor Statistics determine how the market basket should change over time? by evaluating the census by conducting a Consumer Expenditure Survey by calculating the inflation rate by computing the Consumer Price Index

When the economy is working properly, the unemployment rate is . . . 0 to 3 percent 4 to 6 percent 8 to 10 percent 10 to 12 percent

A sustained drop in the price level: chronic inflation deflation stagflation creeping inflation

Workfare is . . . welfare that is limited to preschool-age children a state-by-state grant program of aid to the elderly a program that requires work in exchange for assistance an early-intervention poverty program from the 1950s

The difference between seasonal unemployment and structural unemployment is . . . seasonal unemployment occurs because of schedules, whereas structural occurs because people lack skills. seasonal unemployment is rare in a modern society, whereas structural is not. seasonal unemployment occurs only in the summer, whereas structural can occur all year round. seasonal unemployment is generally among low-paid workers, whereas structural is among the highly paid.

What does it mean when a person is underemployed? The person has been working but now is laid off. The person is looking for work in a special field. The person is not making as much money as they need. The person is working part-time, but desires full-time employment.

The market basket used by the Bureau of Labor Statistics to calculate prices is made up of . . . food items only nonfood items only typical goods and services for an urban household food and necessary services for any family

Income that does not increase even when prices go up: fixed income wage freeze nondisposable income inflation-indexed income

A person who wants a job but has given up looking: pink-ticket worker fringe employee discouraged worker disenfranchised employee

The ability to buy goods and services: pocketbook power consumer price index market basket purchasing power

A general increase in prices: supply-demand index inflation price index market basket