Topic 50 --- Unemployment

Unemployed — people available for work who made a specific effort to find a job during
	the past month who, during the most recent survey week, worked less
	than 1 hour for pay or profit (also includes people who worked in a family
	business without pay for less than 15 hours a week.)
Unemployment Rate — the number of unemployed individuals divided by the total
	number of persons in the civilian labor force.
Reasons Unemployment Rate understates employment conditions (2)
	1.  the unemployment rate does not count those who have become so frustrated 
	     or discouraged that they have stopped looking for work.
	2.  people are considered employed even when they hold part-time jobs.
	     (Being employed is not the same as being fully employed.)
Kinds of Unemployment (5)
	1.  Frictional Unemployment — unemployment caused by workers who are
	      "between jobs" for whatever reason.
	2.  Structural Unemployment — is when a fundamental change in the operations
	      of the economy reduces the demand for workers and their skills.
	3.  Cyclical Unemployment — unemployment directly related to swings in the
	      business cycle. (during recession, companies lay off workers) 
	      (can be mixed with other types of unemployment)
	4.  Seasonal Unemployment — unemployment resulting from changes in the
	       weather or changes in the demand for certain products.
	       (carpenters work more in the summer, than in the winter.)
	5.  Technological Unemployment — unemployment when workers with
	      less skills, talent, or education are replaced by machines.

Automation — production with mechanical or other processes that reduces the need for
	     workers. (cause of technological unemployment.)
Full Employment — lowest possible unemployment rate with the economy growing
	     and all factors of production being used as efficiently as possible.

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			Topic 51 --- Inflation


Inflation — deals with the changes in the level of prices rather than the level of
	employment and output.
	is a rise in the general price level and is generally reported in terms of 
	annual rates of change.
Two terms describe prices
	-inflation
	-price level
Price Level — refers to the relative magnitude of prices at one point in time and is
	used for comparative purposes.
Deflation — is a decrease in the general price level
Degrees of inflation
	- Creeping Inflation — inflation in the range of 1 to 3 percent per year.
	- Galloping Inflation — intense form of inflation - 100 to 300 percent
	- Hyperinflation — inflation in the range of 500 percent and above.
Causes of Inflation (5)
	1.  Demand-Pull — economy wants to buy more than can be produced.
	2.  Government Deficit — same as demand-pull, caused by government deficit.
	3.  Cost-Push — when labor groups cause inflation. 
		Large wage contract cause prices to raise to cover the increases.
	4.  Wage-Price Spiral — if one group asks for higher wages, prices go higher.
 		If either side tries to increase, the other group goes up.
	5.  Excessive Monetary Growth — money supply grows faster than the GDP.
		Extra money produces more purchasing power. Causes a demand-pull.
Consequences of Inflation (4)
	1.  The Dollar Buys Less
	2.  Spending Habits change
	3.  Speculation Increases
	4.  The Distribution of Income is Altered

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		Topic 52 --- Poverty and the Distribution of Income

Analyze distribution of income in two ways
	-looking at households, families, single individuals, geographic regions, race 
		and ethnic origin, sex, or educational attainment.
	-use the family as basic income unit and rank all families — Lowest to highest.
Lorenz Curve — a curve that shows how much the actual distribution of income varies
	 from an equal distribution.
Reasons for Income Inequality (5)
	1.  Education
	2.  Wealth
	3.  Discrimination
	4.  Ability
	5.  Monopoly Power

Blue-Collar Worker — industrial or factory workers who receive wages.
White-Collar Workers — clerical, business, professional workers generally are salaried.
Poverty — relative measure. Depends on prices, standard of living, & others incomes.
Poverty Threshold — annual dollar benchmark. Evaluates money income that families
	and unrelated individuals receive.
Income to Poverty ratio — divides family income by the poverty level.
What caused the distribution of income to increase
	1.  Industry changed from goods production to service production.
	2.  The gap between well-educated and poorly educated workers.
	3.  Declining unionism.
	4.  Changing structure of the American family.
Welfare — economic/social programs that provide assistance from the 
	government or private welfare agencies.
Income assistance — programs that provide direct cash assistance to those in need.
AFDC — Aid to Families with Dependent Children
SSI — Supplemental Security Income
General Assistance — programs that assist poor people but do not provide cash assistance.
Food Stamps — government-issued coupons that can be redeemed for food.
Social Service programs — in such fields as child abuse prevention, foster care, family
	planning, job training, child welfare, and day care.
Negative Income tax — proposed type of tax that would make cash payments to groups
	 below the poverty line.
Enterprise Zones — are areas where companies can locate free of certain local, state, and
	 federal tax laws and operating restrictions.
Workfare — is a program that requires welfare recipients to exchange some of their 
	labor for benefits.