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Macro28
Unemployment
Question | Answer |
---|---|
Employed | -Work as paid employees in own personal business. -unpaid workers in family members business. -full time/part time included. - also includes those who are employed but are not working because of illness, bad weather or vacation. |
Unemployed | -those who are not employed -available for work. -tried to find a job during previous 4 weeks. -includes those who are waiting to be recalled to a job which they have been laid off from. |
Not In Labor Force | Those who fit neither of these categories, such as full time student, homemaker or retiree. |
Unemployment Rate= | Number of Employees / Labor Force X 100 |
Unemployment rate | the percentage of the labor force that is unemployed. |
Labor Force Participation | the percentage of the adult population that is in the labor force. |
Labor Force | The total number of workers, including both the employed and unemployed. |
Labor Force= | Number of Employed + Number of Unemployed. |
Labor Force Participation Rate= | Labor Force / Adult Population X 100 |
Discouraged Workers | Individuals who would like to work but have given up looking for a job. |
Frictional Employment | Unemployment that results because It takes time for workers to search for the jobs that best suit their tastes and skills. |
Structural Unemployment | Unemployment that results because the number of jobs available in Some labor markets is insufficient to provide a job for everyone who wants one. |
Job Search | The process by which workers find appropriate jobs, given their taste and skills. |
Unemployment Insurance | A government program that partially protects workers' incomes when they become unemployed. |
Union | A worker association that bargains with employers over wages benefits and working conditions. |
Barter | The exchange of one good or service for another. |
Double Coincidence of Wants | Unlikely occurrence that two people each have a good the other wants. |
Money | Used to buy goods and services from other people. |
Medium of Exchange | An item buyers give to sellers when they want to purchase goods & services. |
Unit of Account | Th yardstick people use to post prices and record debts. |
Commodity money | Takes the form of a commodity with intrinsic value. |
Flat Money | money without intrinsic value used as money because of a government decree. Example: US Dollar |
Money Supply ( Money Stock ) | The quality of money available in the economy. |
Currency | Paper bills and coins in the hands of the (non-bank) public. |
Demand Deposit | Balance in bank accounts that depositors can have access on demand by writing a check. |
Central Bank | An institution that oversees the banking system and regulates the money supply. |
Monetary Policy | The setting of the money supply by policy makers in the central bank. |
Federal Reserve | Central Bank of the US. |
Store of Value | An item people can use to transfer purchasing power from the present to the future. |
Natural Rate of Unemployment | The normal rate of unemployment around which the unemployment rate fluctuates. |
Clyclical Unemployment | The deviation of unemployment from its natural rate. |
Collective Bargaining | The process by which unions and firms agree on terms of employment. |
Strike | An organized withdrawl of labor from a firm by a union. |
Efficency Wages | Above equalibrium wages paid by firms to increase worker productivity. |
Central Bank | an institution designed to oversee the banking system and regulate the quanity of money in the economy. |
Money Supply | The quanity of money available in the economy. |
Momentary Policy | The setting of the money supply by policymakers in central bank. |