What factors determine national income?
5 Factors for Determining the Size of National Income
- Factor # 2. Technical Knowledge:
- Factor # 3. Political Stability:
- Factor # 4. Terms of Trade:
- Factor # 5. Foreign Investment:
Which of the following is the largest dollar amount in the United States?
The highest value of denomination currently in production is the $100 bill, but in decades past, the Federal Reserve has issued $1,000, $5,000, $10,000 and even $100,000 bills. The first known use of the $1,000 bill coincides with the United States’ beginnings.
Which one of the following represents the smallest dollar amount in the United States?
Disposable income
Which would be considered an investment according to economists?
By investment, economists mean the production of goods that will be used to produce other goods. This definition differs from the popular usage, wherein decisions to purchase stocks (see stock market) or bonds are thought of as investment.
What is income that does not increase over time?
inflation. A general increase in prices. fixed income. Income that does not increase even when prices go up.
Can money income increase without increase in real income?
Real income, also known as real wage, is how much money an individual or entity makes after adjusting for inflation. Real income differs from nominal income, which has no such adjustments. Theoretically, when inflation is rising, real income and purchasing power fall by the amount of inflation on a per-dollar basis.
Is an income that does not increase even though prices go up?
Ch 13 Economic Challenges
| A | B |
|---|---|
| wage-price spiral | the process by which rising wages cause higher prices, and higher prices cause higher wages |
| fixed income | income that does not increase even when prices go up |
| deflation | a sustained drop in the price level |
What can happen to unemployment when the economy slows down?
By changing the number or kinds of jobs available. What can happen to unemployment when the economy slows down? It rises because the demand labor goes down. There is no Cyclical Unemployment.
What is a healthy unemployment rate?
Many consider a 4% to 5% unemployment rate to be full employment and not particularly concerning. The natural rate of unemployment represents the lowest unemployment rate whereby inflation is stable or the unemployment rate that exists with non-accelerating inflation.
Who is considered officially unemployed?
People are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work.
Who is not included in the unemployment rate?
The unemployment rate measures the share of workers in the labor force who do not currently have a job but are actively looking for work. People who have not looked for work in the past four weeks are not included in this measure.
Are retirees considered unemployed?
If you’re recently retired because you reached your company’s mandatory retirement age and your only income is from Social Security, you’re probably eligible for unemployment compensation. To determine if you’re eligible or not, you’ll need to read the unemployment compensation regulations for your particular state.
What is the difference between being unemployed and being out of the labor force?
People with jobs are employed. People who are jobless, looking for a job, and available for work are unemployed. The labor force is made up of the employed and the unemployed. People who are neither employed nor unemployed are not in the labor force.
Is someone not willing to work counted as being in the labor force?
For example, stay-at-home moms, retirees, and students are not part of the labor force. Discouraged workers who would like a job but have given up looking are not in the labor force either. To be considered part of the labor force, you must be available, willing to work, and have looked for a job recently.