2.3 Other Measures of Business Activity
A stock represents what?
Ownership in a company?
GDP
Define GDP
Total value of all final goods and services produced in one year
Where is Mr. L from?
Phoenix, AZ
What is a mortgage rate?
Amount individuals pay to borrow for the purchase of a home
The total amount owed by the federal government is called...
National debt
Name the 4 sections of the business cycle
Prosperity
Recession
Depression
Recovery
GDP measures a countries economic output during 1 year
True
Where does Mr. L go to school?
Central
The portion of people in the labor force who are not working but looking for work is the...
Unemployment rate
Explain what a budget surplus is.
When a government spends less than it takes in
What is the prime rate?
Rate banks make available to their best business customers
What is productivity?
Production output in relation to a unit of input
What did Mr. L coach at EBF?
Baseball
GDP must be slow for how many quarters for it to be considered a recession?
2
If you purchase a bond you become a...
creditor
What is a price index?
Number that compares cost of living prices in one year with prices in an earlier base year
Name one of the 4 components of GDP
1. Consumer spending for food, clothing, housing
2. Business spending for buildings, equipment, items
3. Government spending for employees & supplies
4. Exports of a country less the imports into the country
What sport does Mr. L coach currently?
Football
Dividing GDP by the total population of a country is the country's
GDP per capita
What is the difference between business debt and consumer debt?
Consumer debt is incurred by an individual for personal, family, or household purposes. Business debt is incurred to operate, fund, or grow a business with a profit
What is demand-pull inflation?
When wages and prices of goods & services rise together
What is the specialization of labor?
Training of workers for a specific task
Is Mr. L left or right handed?
Left
What does GDP not include?
The work you do for yourself!