GDP
What does GDP stand for.
Gross Domestic Product
The general increase in prices is called?
Inflation
Short term, temporary unemployment is what kind of unemployment?
Frictional Unemployment
The products that countries buy from elsewhere are known as?
Imports
non-price competition
If a countries nominal GDP is $100,000 and they have a population of 10,000 people what is their GDP per capita.
10
Rising production costs that force businesses to raise prices is known as what kind of inflation?
Cost-Push Inflation
Let's go I just graduated. I am gonna start applying for so many jobs, but for now I am what kind of unemployed?
Frictional Unemployment
A tax imposed to businesses on imports to hinder international buying is known as?
Tariffs
If there are only a few firms that dominate a market we call this a?
Oligopoly
What is the real GDP increase over a year if the nominal GDP went up 9% but inflation went up 4%?
5%
Why is inflation not necessarily a bad thing?
It encourages spending and investing over saving
Darn, I just got let go because the governments fiscal policy has put us in a second Great Depression. What kind of unemployment is this?
Cyclical Policy
If Barbados sells $750,000 worth of exports and buys $1,500,000 worth of imports they are in a?
Trade Deficit of $750,000
What kind of policy does the president prefer to take care of our Economics issues?
Monetary Policy
What country has the third highest GDP in the world last year?
Germany
What percentage is considered a healthy inflation rate?
2-3%
Underemployment
Country A can produce either 120 cars or 60 computers.
Country B can produce either 80 cars or 80 computers.
Which country has the comparative advantage in producing cars?
Country A
What is one of the three functions of money?
Medium of Exchange, Store of Value, or Unit of Account
What is the GDP formula?
GDP = C + I + G + (X-M)
A city experiences rapidly rising restaurant prices. At the same time, wages are increasing, food costs are rising, and businesses continue raising prices to cover their higher expenses.
Built in Inflation / Wage - Price Spiral
A town has a total population of 1,000 people. 300 people are not working and are not looking for work. The labor force is 500 people, and 50 of those are unemployed and actively looking for work.
50 / 500 = 10%
What is the positive side of having a weak US dollar in terms of exchange rate?
A state charges a 10% sales tax on most purchases. A family earning $30,000 and a family earning $150,000 both pay the same tax rate when they buy groceries and household goods.
What tax structure is this?
Regressive Tax