Frictional Unemployment - I began my career becoming an engineer. After being an electrical engineer for 8 years, I decided to apply for a higher position (management).
Seasonal Unemployment - After finding out I wanted to become a farmer I soon bought land and started harvesting crops. But what I didn't think about is that I would be unemployed each winter because of the lack of crops.
Structural Unemployment - Once I discovered that I would lose my job each winter farming, I soon began to look for a job. I became a dvd maker in an older company and because blu ray discs have become very popular, I was cut from my job.
Cyclical Unemployment - So after my travel around the different jobs, I found that being an engineer was the most steady job. So I reapplied to become an engineer and within a year of having the job I was laid off because of the recession . :(
Monday, January 24, 2011
Wednesday, January 19, 2011
Post 23: WANTED! Unemployment: wanted dead or alive.
Unemployment has been stealing jobs and money leaving countless of people homeless. It has been suspected that there have been multiple Unemployments involved in this crime include: Frictional Unemployment, Structural Unemployment, and Seasonal Unemployment. Unemployment affect the economy because there will be less products being produced which can create economic issues.
Post 22: 15 facts from 3 quizzes
Quiz 1
1. The census bureau conducts a monthly study called the Current Population Survey.
2. Unemployment rate is the most closely watched labor force statistic.
3. Workers are underemployed if they have jobs beneath their skill level.
4. About 95% of the workforce is fully employed.
5. Unemployment that results from a change in technology is called structural unemployment.
Quiz 2
1. Aggregate supply is the total amount of goods and services produced throughout the economy.
2. A Supply Shock is an event that increases the cost of production for all or many firms.
3. To construct the consumer price index, the Bureau of Labor Statistics selects a sample of commonly purchased consumer items, called the Market Basket
4. The worst degree of inflation is called hyperinflation
5. High interest rates lead to less consumer spending.
Quiz 3
1. The poverty threshold is the lowest income level that a family needs to maintain a basic standard of living.
2. The poverty rate is the percentage of individuals or families that are living in poverty.
3. The data used to plot a Lorenz Curve can also be used to compute the gini Index.
4. Rapid changes in technology have led to a drop in demand for lower-skilled workers.
5. One suggestion for improving income equality is raising the minimum wage.
1. The census bureau conducts a monthly study called the Current Population Survey.
2. Unemployment rate is the most closely watched labor force statistic.
3. Workers are underemployed if they have jobs beneath their skill level.
4. About 95% of the workforce is fully employed.
5. Unemployment that results from a change in technology is called structural unemployment.
Quiz 2
1. Aggregate supply is the total amount of goods and services produced throughout the economy.
2. A Supply Shock is an event that increases the cost of production for all or many firms.
3. To construct the consumer price index, the Bureau of Labor Statistics selects a sample of commonly purchased consumer items, called the Market Basket
4. The worst degree of inflation is called hyperinflation
5. High interest rates lead to less consumer spending.
Quiz 3
1. The poverty threshold is the lowest income level that a family needs to maintain a basic standard of living.
2. The poverty rate is the percentage of individuals or families that are living in poverty.
3. The data used to plot a Lorenz Curve can also be used to compute the gini Index.
4. Rapid changes in technology have led to a drop in demand for lower-skilled workers.
5. One suggestion for improving income equality is raising the minimum wage.
Tuesday, January 18, 2011
Post 21: Vocab
Terms List:
National income accounting - The process of tracking production, income, and consumption in a nation's economy.
Gross domestic product - Total dollar value of all final goods and servies produced within a country during one calender year.
output-expenditure model - A way to calculate GDP C + I + G + (X - M) = GDP.
personal consumption expenditure - consumer purchases.
gross investment - total value of all capital goods produced in a given nation during one year as well as changes in the dollar value of business inventories.
nominal GDP - Current GDP.
real GDP - GDP adjusted for price changes.
Price index - set of statistics that allow economists to compare prices over time.
underground economy - illegal activities and unreported legal activities.
gross national product - measures the total dollar value of all final output produced with factors of production owned by residents of a country during one year.
business cycle - fluctuations in a market system's economic activity.
expansion - a period of economic growth.
peak - a high point of expansion, where the economy is at its strongest and most prosperous point.
contraction - a recession.
recession - decline in real GDP for two or more consecutive quarters.
depression - prolonged and severe recessions.
trough - occurs when demand, production, and unemployment reach their lowest levels.
leading indicators - anticipate the direction in which the economy is headed.
coincident indicators - change as the economy moves from one phase of the business cycle to another and tell economists that an upturn or downturn in the economy has occurred.
lagging indicators - change months after an upturn or downturn in the economy has begun.
real GDP per capita - increase in the real dollar value of all final goods or services that are produced per person for a specified period of time.
labor productivity - measure of how much each worker produces in a given period of time.
productivity growth - an increase in the output of each worker per hour of work.
capital to labor ratio - the amount of capital stock available per worker.
capital deepening - an increase in the amount of capital goods available per worker - results.
National income accounting - The process of tracking production, income, and consumption in a nation's economy.
Gross domestic product - Total dollar value of all final goods and servies produced within a country during one calender year.
output-expenditure model - A way to calculate GDP C + I + G + (X - M) = GDP.
personal consumption expenditure - consumer purchases.
gross investment - total value of all capital goods produced in a given nation during one year as well as changes in the dollar value of business inventories.
nominal GDP - Current GDP.
real GDP - GDP adjusted for price changes.
Price index - set of statistics that allow economists to compare prices over time.
underground economy - illegal activities and unreported legal activities.
gross national product - measures the total dollar value of all final output produced with factors of production owned by residents of a country during one year.
business cycle - fluctuations in a market system's economic activity.
expansion - a period of economic growth.
peak - a high point of expansion, where the economy is at its strongest and most prosperous point.
contraction - a recession.
recession - decline in real GDP for two or more consecutive quarters.
depression - prolonged and severe recessions.
trough - occurs when demand, production, and unemployment reach their lowest levels.
leading indicators - anticipate the direction in which the economy is headed.
coincident indicators - change as the economy moves from one phase of the business cycle to another and tell economists that an upturn or downturn in the economy has occurred.
lagging indicators - change months after an upturn or downturn in the economy has begun.
real GDP per capita - increase in the real dollar value of all final goods or services that are produced per person for a specified period of time.
labor productivity - measure of how much each worker produces in a given period of time.
productivity growth - an increase in the output of each worker per hour of work.
capital to labor ratio - the amount of capital stock available per worker.
capital deepening - an increase in the amount of capital goods available per worker - results.
Tuesday, January 11, 2011
Post 20: Quiz Corrections
Reviewing Facts
1. a; h; National income accounting is the process of tracking production, income, and consumption in a nation's economy (229)
2. b; a; Nominal GDP is the current GDP (232)
7. f; g; Coincident indicators change as the economy moves from one phase to another. (240)
8. g; f; Lagging indicators change months after an upturn of downturn in the economy has occurred (240)
Understanding Ideas
2: d; b; GDP does not include products such as used cars or secondhand clothing...goods were accounted in the year they were produced (230)
4. d; a; Gathering the necessary data is a slow and time consuming process. (233)
Matching
1. b; d; National income accounting is the process of tracking production, income, and consumption in a nation's economy (229)
2. i; b; Nominal GDP is the current GDP (232)
4. t; f; GNP measures the total dollar value of all final output produced with factors of production owned by residents of a country during one year (234)
12. c; s; Capital Deepening - an increase in the amount of capital goods available per worker (245)
1. a; h; National income accounting is the process of tracking production, income, and consumption in a nation's economy (229)
2. b; a; Nominal GDP is the current GDP (232)
7. f; g; Coincident indicators change as the economy moves from one phase to another. (240)
8. g; f; Lagging indicators change months after an upturn of downturn in the economy has occurred (240)
Understanding Ideas
2: d; b; GDP does not include products such as used cars or secondhand clothing...goods were accounted in the year they were produced (230)
4. d; a; Gathering the necessary data is a slow and time consuming process. (233)
Matching
1. b; d; National income accounting is the process of tracking production, income, and consumption in a nation's economy (229)
2. i; b; Nominal GDP is the current GDP (232)
4. t; f; GNP measures the total dollar value of all final output produced with factors of production owned by residents of a country during one year (234)
12. c; s; Capital Deepening - an increase in the amount of capital goods available per worker (245)
Tuesday, January 4, 2011
Post 18: Twitter Man!
Dear Jerry,
I want to thank you for your hard work and on-going dedication for providing resources for economic students, teachers, and for those that are curious. By creating this list of resources you've benefited many. Students who are in economic classes will have the opportunity to find information quickly and efficiently while they still gain the full knowledge of economics. Teachers can now create lesson plans based off of the vast information in the resources you've provided. Most of the links provided are either interesting or useful. This appeals to a large majority of people, whether they are studying economics or not. In fact, the CPI Inflation Calculator and the currency converter are great tools for the average day person. Thanks again for posting these great links and I hope you continue to do so.
Sincerely,
Justin G
I want to thank you for your hard work and on-going dedication for providing resources for economic students, teachers, and for those that are curious. By creating this list of resources you've benefited many. Students who are in economic classes will have the opportunity to find information quickly and efficiently while they still gain the full knowledge of economics. Teachers can now create lesson plans based off of the vast information in the resources you've provided. Most of the links provided are either interesting or useful. This appeals to a large majority of people, whether they are studying economics or not. In fact, the CPI Inflation Calculator and the currency converter are great tools for the average day person. Thanks again for posting these great links and I hope you continue to do so.
Sincerely,
Justin G
Thursday, December 23, 2010
Post 17: Business Cycle Graphs
Graph 1: The graph uses great economic vocabulary words and uses colors to enhance the visual. The graph also has a labeled X and Y axis to further describe the business cycle. The only thing the graph lacks is a title.
Graph 2: This graph shows only one hump and therefore not expressing that the business cycle will repeat itself. It uses some mediocre vocabulary words and it's very bland being only black and white. Although the graph has a labeled X and Y axis, it fails to have a title.
Graph 3: The graph has a title and a labeled Y axis but not labeled X axis. It is very visually appealing however the graph only shows one hump.
I believe that graph 1 is the most successful created graph of them all because it shows the continuous nature of the business cycle. The graph also shows a "growth trend" line to show that although the economy will have a fluctuation between peak and trough, the economy will slowly increase over time. The colors and design of the graph makes it very visually appealing.
Wednesday, December 22, 2010
Tuesday, December 21, 2010
Post 15: Top 3 leading/coincident/lagging indicators
Leading indicators: - Economic indicator that changes before the overall economy has changed.
- Average weekly hours, manufacturing
- Average weekly initial claims for unemployment insurance
- Manufacturers’ new orders, consumer goods, and material
- Gross Domestic Product
- Manufacturing and trade sales
- Personal Income
- The value of outstanding commercial and industrial loans
- The change in the Consumer Price Index for services from the previous month
- The change in labor cost per unit of labor output
I think that the best indicator is GDP and Average weekly initial claims for unemployment insurance because both of these help explain the economy at any given time. These two indicators will both show the total amount of product being produced in the US and show the unemployment rate which will be a good predictor for the business cycle.
Post 14: Reaction to business cycle videos
Although the first two videos were "silly," they were very educational as well. The "My Humps" video was both the msot educational and the msot entertaining. It contained a lot of the terms that I have or will learn. The "Business cycle rap" was silly but not as educational and the Qwiki video was educational but not silly. Therefore, the "My Humps" video was the most educational and fun to watch.
Monday, December 20, 2010
Post 13: 10 things I learned from the practice Quizzes
1. Although GNP is more accurate, most countries use GDP.
2. Government transfer payments aren't included in government spending.
3. The underground economy isn't included in GDP because the underground economy is either illegal activities or unreported legal activities.
4. Anything that does not deal with money (barter transactions, housework, or self-repairs) are considered non market activities.
5. The business cycle is the changes in the market economy and it includes 6 different phases.
6. War is considered an external factor that may change the business cycle.
7. Indicators predict the future of the business cycle whether they be lagging or coincident indicators.
8. The amount of capital stock to worker is called the capital-to-labor ratio.
9. A country's standard of living decreases without long term economic growth.
10. Economists usually measure growth per capita.
2. Government transfer payments aren't included in government spending.
3. The underground economy isn't included in GDP because the underground economy is either illegal activities or unreported legal activities.
4. Anything that does not deal with money (barter transactions, housework, or self-repairs) are considered non market activities.
5. The business cycle is the changes in the market economy and it includes 6 different phases.
6. War is considered an external factor that may change the business cycle.
7. Indicators predict the future of the business cycle whether they be lagging or coincident indicators.
8. The amount of capital stock to worker is called the capital-to-labor ratio.
9. A country's standard of living decreases without long term economic growth.
10. Economists usually measure growth per capita.
Post 12: To the Editor
To whom it may concern,
Although GDP is a roughly estimated amount of "Gross domestic product" it is a faulty indicator because it fails to include many products. Because GNP measures the output generated by a country's enterprises both in the US and outside it's boarders, it may be a better predictor since GDP only measures the total output produced within the US borders even if it's produced by the US's own firms or not. The only reason why the US uses the GDP as it's main estimator is because most other countries have already adopted the GDP estimator to predict their national product. Because GNP calculates the total income of the country (GNP = GDP + NR (Net income from assets abroad (Net Income Receipts), it creates a more accurate representation of the nation's yearly economy which can be easily studies and analyzed to create trends and predictions.
~JustinG
Although GDP is a roughly estimated amount of "Gross domestic product" it is a faulty indicator because it fails to include many products. Because GNP measures the output generated by a country's enterprises both in the US and outside it's boarders, it may be a better predictor since GDP only measures the total output produced within the US borders even if it's produced by the US's own firms or not. The only reason why the US uses the GDP as it's main estimator is because most other countries have already adopted the GDP estimator to predict their national product. Because GNP calculates the total income of the country (GNP = GDP + NR (Net income from assets abroad (Net Income Receipts), it creates a more accurate representation of the nation's yearly economy which can be easily studies and analyzed to create trends and predictions.
~JustinG
Friday, December 17, 2010
Post 11: 4x4
Step 1: Calculate Consumption expenditures
Step 2: Calculate Government purchases
Step 3: Determine Gross private domestic investments
Step 4: Calculate Net exports
Step 5: Put it all together
Step 2: Calculate Government purchases
Step 3: Determine Gross private domestic investments
Step 4: Calculate Net exports
Step 5: Put it all together
Post 10
Macroeconomics will be about the economy in broad terms. For example, the study of economics relating to the U.S. governemnt as a whole would be considered U.S. macroeconomics. Macroeconomics is really fascinating because of the variety of things to analyze. Economists constantly predict the economic future and reading about the future is always interesting. I hope to learn some of the parts of macroeconomics, how economists can predict the economic future, and to determine how easy it is to understand different parts of economics.
Tuesday, December 14, 2010
Post 9: 100 Word Essay: How has technology made our world a better place?
Technology invites us into a world of vast and unknown possibilities. It’s unlimited power has gifted mankind a better place to live. It’s curing hands heal us from diseases. It eases and lightens the challenges in our everyday life. Technology is more than what is tangible, it is the idea that enshrouds our society, making it a better place day by day. From the beginning man stepped foot on our world, he has discovered, invented, and designed, the basics of technology. Technology is human nature. From caveman to modern day business man, technology has greatly changed society for the better.
Friday, December 10, 2010
Post 8: Malcolm Gladwell
Companies are always trying to create the new flavor or design that appeals to people. The more variety a company has, the more someone will like one of their products. Also, with a variety of choices in the food industry, people will have to “taste test” the different variations to find their favorite taste leading to more people buying multiple products of a company. If the prices are close, people chose their preferred products. Whether it be by taste, looks, style, or popularits, choices are made based upon many factors that appel to the consumers. Relating to Chapter 6, the Perfect competition market structure makes companies compete over something other than price. They have to make their product different, also called product differentiation, so that it appelas to the consumer greater than the other related products. The Malcolm Gladwell video reminds me of the potato chip industry and the variety of flavors, choices and companies consumers can chose from.
Thursday, December 2, 2010
Post 7: 4 Varieties of Monopolies
Natural - Cable TV (Comcast)
Geographic - A general store in a remote community
Technological - Google
Government - US Postal Service
Geographic - A general store in a remote community
Technological - Google
Government - US Postal Service
Post 6: Flip Card Review
Click the link below to see the U.S. Antitrust Legislation Flash cards
http://www.proprofs.com/flashcards/story.php?title=us-antitrust-laws
Here is another link to a website where you can create your own flashcards just by registering to the site.
http://www.flashcardmachine.com/
http://www.proprofs.com/flashcards/story.php?title=us-antitrust-laws
Here is another link to a website where you can create your own flashcards just by registering to the site.
http://www.flashcardmachine.com/
Post 5: One Monopoly that I want to see broken up
I would like to see PSEG broken. In what seems to be only a few years, I'm going to own my own house or apartment and I'll have to pay a bill every month to PSEG. In New Jersey, they are a monopoly, and I would like to see other companies join into this market so that competition will create lower prices. This would benefit everyone in New Jersey who owns or rents a home including my family.
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