Tuesday, January 25, 2011

Post 25: Extra Credit

Gini Index of the World...

 Link of the Gini Index:  http://www.nationmaster.com/graph/eco_gin_ind-economy-gini-index

I found it interesting that places such as Japan and Vietnam had a higher Gini Index than the United States.  It was shocking what I found and it was kind of unexpecting in a way.  What this says about America is that we are not as equal and as powerful as so many think that we are.

Three American Groups Fighting Poverty:

  1. FOCUS North America
  2. Fundacion En Via of Oaxaca 
  3. Oxfam America
For Northern Burlington, the best place to donate money to fighting poverty in my opinion would be oxfam because of the support in America and globally.  They help and fight poverty not only in the United States but oxfam also helps other countries such as Haiti and other countries.  This would help the oxfam community grow and make donations possible to help those in need.  You donate monthly and your money goes toward a good cause.  "And after the earthquake in Haiti, Oxfam purchased the peanut butter and cornmeal from her group to help feed 10,000 surviving families." (oxfamamerica.org)  Therefore, I would pick oxfam to be the place of donation for Northern Burlington.

Monday, January 24, 2011

Post 24: Four Future Scenarios


Scenario #1 (Frictional)-  I am fired from my job as being a civil engineerer and I am will be searching for another job dealing with computers.  So I am basically going from one job to another and in the period of looking for another job I am in frictional unemployment.

Scenario #2 (Structural)-  I lost my job as being a oil miner since technology has changed and oil is no longer used.  Now instead of oil and gas as fuels, we have solar and wind fuel for the future.  So because of the shift in techonology I had lost my job.

Scenario #3 (Cyclical)- I had a job with General Motors and because of the recession and economic fall in 2038, I lost my whole job and had to be laid off.  Due to the recession I lost my job and now face the challenge of being unemployed.

Scenario #4 (Seasonal)- I am one of the few farmers left in the year 2020 and right now is the coldest winter that I have ever experienced.  Because of the winter months, my job is greatly affected by this and I am currently unemployed.  I lost my job because I can not produce anything in 5 feet of snow and this forces me to be unemployed until the spring, summer, and then the fall again.  So, I am seasonally unemployed.

Sunday, January 23, 2011

Post 23: Wanted Post

Post 22: 15 Things I Learned...

Quiz 1:
  1. The Census Bureau conducts a monthly study called the Current Population Survey
  2. Structural unemployment is unemployment that results from changes in technology or in the way the economy is structured
  3.  Frictional unemployment is unemployment attributed to workers moving from one job to another
  4. Seasonal unemployment affects primarily agricultural workers
  5. The unemployment rate is the most closely watched and highly publicized labor force statistic
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. Economists use price indexes to calculate the inflation rate
  4. The worst degree of inflation is called hyperinflation
  5. To construct the consumer price index, the Bureau of Labor Statistics selects a sample of commonly purchased consumer items, called the market basket
Quiz 3:
  1. The data used to plot a Lorenz Curve can also be used to compute the Gini Index
  2. Rapid changes in technology have led to a drop in demand for lower-skilled workers.
  3. The poverty threshold is the lowest income level that a family needs to maintain a basic standard of living
  4. One suggestion for improving income equality is raising the minimum wage
  5. The heavy corporate downsizing of the late 1980s and early 1990s increased unemployment and resulted in many workers settling for lower-paying jobs

Wednesday, January 19, 2011

Post 21: Vocab Terms


national income accounting- the bookkeeping system that a national government uses to measure the level of the country's economic activity in a given time period.

gross domestic product- The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis

output-expenditure model- The output expenditure model tend to depreciate the currency and only temporarily raise gross domestic product and the current account surplus, although permanently raise the domestic price level

personal consumption expenditure- A measure of price changes in consumer goods and services. Personal consumption expenditures consist of the actual and imputed expenditures of households

gross investment- A measure of additions to the capital stock that does not subtract depreciation of existing capital.

nominal GDP- A gross domestic product (GDP) figure that has not been adjusted for inflation

real GDP- An inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices

price index- Percentage number that shows the extent to which a price (or a 'basket' of prices) has changed over a period (month, quarter, year) as compared with the price(s) in a certain year (base year) taken as a standard.

underground economy- refers to both legal activities, such as often found in construction and services industries where taxes are not withheld and paid, and illegal activities

gross national product- is the value of all the goods and services produced in an economy, plus the value of the goods and services imported, less the goods and services exported.

business cycle- The recurring and fluctuating levels of economic activity that an economy experiences over a long period of time

expansion- The phase of the business cycle when the economy moves from a trough to a peak

peak contraction- The highest point between the end of an economic expansion and the start of a contraction in a business cycle

recession- A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade

depression- A severe and prolonged recession characterized by inefficient economic productivity, high unemployment and falling price levels

trough- The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion

leading indicators- Leading indicators are indicators in economics and finance used to predict the future

coincident indicators- Economic and financial market indicators which tend to move in step with (1) general economic trends such as gross domestic product (GDP), employment levels, retail sales, and/or (2) financial market trends such as interest rates and stockmarket prices.

lagging indicators- are indicators in economics and finance used to measure past performance

real GDP per capita- A country's real GDP per member of the population. This may be calculated using the total population.

labor productivity- Rate of output per worker (or a group of workers) per unit of time as compared with an established standard or expected rate of output.

productivity growth- is a measure of output from a production process, per unit of input. For example, labor productivity is typically measured as a ratio of output per labor-hour, an input

capital-to-labor ratio- The ratio of capital to labor employed in a process, a firm or an industry

capital deepening- is a term used in economics to describe an economy where capital per worker is increasing

Thursday, January 13, 2011

Tuesday, January 11, 2011

Post 19: GDP Visual

3 Rules:
  • Final Output
  • Current Year
  • Output within National Boundaries
  • Accuracy and Timeliness
  • Non-market activity (home repair)
  • Underground Economy
  • Goods- are not reported (policies/aid)
  • Bads- are reported (pollution/risk)