1. The mobility of capital and labor has led to a shift from local to international markets resulting in moving facilities to other countries. What is this shift called? globalization

2. New technology, discovery of new resources, lack of education, and changes in consumer demand can lead to this type of joblessness Structural unemployment

3. The effect that inflation has on the elderly, more than any other group, because they live on a fixed income Loss of purchasing power

4. The Current Population Survey is conducted by the United States Bureau of the Census for this federal agency. Bureau of Labor and Statistics (BLS)

5. This simple model used by economists illustrates how income is distributed throughout the economy Lorenz Curve

6. A measure used by the government to offset the impact of the Social Security payroll tax on low income families. Earned Income Tax Credit

7. A single parent with one child whose income is $13,000 falls below this income level The poverty threshold

8. If a worker’s wages increases with the rate of inflation this stays the same Real income

9. If the Federal Reserve lowers the federal funds rate, but aggregate supply does not increase, what will increase? Price (MV = PQ) If the money supply(M) increases, but aggregate supply(Q) does not also increase, price must increase in order for the market to establish a new equilibrium.

10. The previous slide illustrates this theory. Quantity Theory of Inflation

11. A student who has just graduated from college and is now looking for a job is said to be experiencing this Frictional unemployment

12. Total Population, divided by the number of people currently looking for work, times 100. Unemployment rate

13. Downturns in the business cycle lead to this type of unemployment Cyclical unemployment

14. The maximum amount of time a person can collect unemployment under normal conditions 26 weeks

15. Area where companies can locate to reduce the cost of running a business Enterprise Zones (to reduce taxes and revitalize rundown areas in the inner cities)

16. This group of workers are not represented in the unemployment rate Underemployed or discouraged workers

17. This group of individuals make up the largest portion of those living in poverty children

18. This type of resident is most likely to be living in poverty because of the lack of job availability Inner city Or Rural

19. This type of anti-poverty program rewards parents for attending PTA meetings, volunteering and good school attendance for their children Incentive programs

20. This program replaced the AFDC in order to move families from welfare dependence to employment TANF (Temporary Aid to Needy Families)

21. Workers’ skills do not match those needed for the jobs available describes this… Structural unemployment

22. This is the only type of joblessness that exists in times of full employment Frictional unemployment (3 to 5 percent)

23. Farmers typically experience this on a yearly basis Seasonal unemployment

24. The decline of manufacturing jobs in the U.S. has given rise to this… Low-skill service jobs

25. Increased costs lead to increased prices which lead to increased wages describes this Wage-price spiral