CHAPTER 14 ECON TEST

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Center of Population
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Point where the country would balance if it could be laid flat and if everyone weighed the same
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Fertility Rate
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Number of births that 1,000 women are expected to undergo in their lifetime
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Net Immigration
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The net change in population caused by people moving into and out of the country
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Population Pyramid
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Bar graph that shows the breakdown of population by age and gender
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Dependency Ration
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Ratio based on the number of children and elderly for every 100 persons in the working age bracket of 18 through 64
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The official count of all people in the United States is called
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The decennial census
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Since colonial times, the rate of growth of the United States population has
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Steadily decreased
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Which best describes the movement of the center of population of the United States
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East to west
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All of the following factors affect population growth EXCEPT
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Demographers
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Since colonial times, the average size of a household in the United States has
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Decreased
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Business Cycles
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Systematic upturns and downturns of real GDP
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Business Fluctuations
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Nonsystematic upturns and downturns of real GDP
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Peak
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Point in the business cycle when real GDP stops increasing
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Trough
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Point in the business cycle when real GDP stops decreasing
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Recession
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Period during which real GDP declines for two quarters in a row, or six consecutive months
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What are the two phases of the business cycle?
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Depression and recession
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A severe recession with high unemployment, acute shortages, and excess manufacturing capacity is known as
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A depression
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Which of the following factors did NOT contribute to the Great Depression?
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Massive govt. spending for wartime goods.
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All of the following factors contribute to business cycles, EXCEPT
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Business fluctuations
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The index of leading indicators
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is used to predict changes in business cycles.
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Unemployment Rate
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Number of employed persons divided by the total number of persons in the civilian labor force
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Frictional Unemployment
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Unemployment: caused by workers who are “between jobs”
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Structural Unemployment
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Occurs when a fundamental change in the operations of the economy reduces the demand for works and their skills
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Cyclical Unemployment
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Unemployment directly related to swings, in the business cycle
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Technological unemployment
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Occurs when workers with less skills, talk, or education are replaced by machines that do their jobs
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When a construction worker cannot work because of a winter snowstorm, he is
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Seasonally unemployed.
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A telephone receptionist loses his job when a computerized voice mail system is installed at his office. He is
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Technology unemployed.
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An assembly line worker in an automobile plant is laid off during a recession. She is
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Cyclically unemployed
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The unemployment rate understates employment conditions for all of the following reasons EXCEPT
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Some workers are “between jobs” for one reason or another.
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To an economist, full employment is reached when the unemployment rate drops below
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4.5 percent
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Price Level
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The relative magnitude of prices at one point in time
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Deflation
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A decrease in the general price level
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Creeping Inflation
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Inflation in the range of 1 to 3 percent per year
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Galloping Inflation
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Intense form of inflation that can go as high as 100 to 300 percent per year
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Hyperinflation
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Inflation in the range of 500 percent a year and above
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To calculate the inflation rate, economists
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Divide the change in the price level by the beginning price level and multiply by 100
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All of the following are theories regarding the cause of inflation EXCEPT
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Cost-pull
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An economist who attributes inflation to no single group is holding to the
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Wage-price spiral theory of inflation
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According to the excessive monetary growth theory of inflation, extra money in the economy is spent leading to a
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Demand-pull effect
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All of the following are consequences of inflation EXCEPT
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Interest rates decrease

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