SIMPLE CITCULAR FLOW
SLAVE TRADE
NATIONAL INCOME
Chapter 10
NOMINAL AND REAL VALUES
100
WHY IS PROFIT A COST OF PRODUCTION ?
profits are the return entrepreneurs receive for the risk they incur when organizing productive activities.
100
DURING SLAVERY SLAVES WERE TREATED AS 
Dehumanized Property
100
NATIONAL INCOME ACCOUNTING
A measurement system used to estimate national income and its components. 
100
SAVINGS-INVESTMENT SPENDING IDENTITY
Savings and investment spending are always equal for the economy as a whole
100
NOMINAL VALUES
Measurements in terms of the actual market prices at which goods are sold; expressed in current dollars, also called money values
200
WHAT ARE PRODUCT MARKETS 
Transactions in which households buy goods
200
WHAT YEAR DID THE OTTOMAN TURKS CAPTURE CONSTANTINOPLE
1453
200
WHAT IS A FINAL GOOD ?
ALL CORRECT ANSWERS

- wheat  - automobile

- steel    - crude oil 

-bread

-gasoline


200
BUDGET BALANCE
The difference between tax revenue and government spending.  
200
CONSTANT DOLLARS
Dollars expressed in terms of real purchasing power
300
FACTOR MARKETS
Transactions in which businesses buy resources
300
SLAVES ALWAYS BEEN CONSIDERED " OUTSIDERS" OF THEIR MASTERS SOCIETIES BUT SLAVERY CAME IN MANY FORMS OF:
Jobs of slaves differed depending on the region
300
GROSS DOMESTIC PRODUCT
The total market value of all final goods and services produced by factors of production located within a nations borders
300
HUMAN CAPITAL 
is the improvement in the labor force generated by education and knowledge.
300
REAL VALUES
Measurements after adjustments have been made for changes in the average of prices between years; expressed in constant dollars
400
FINAL GOODS AND SERVICES
Goods and services that are at their final stage of production and will not be transformed into yet other goods or services
400
NAME SOME ITEMS THAT AFRICAN SELLERS WANTED IN EXCHANGE FOR SLAVES
Tobacco and alcohol


Firearms and gunpowder

400
NUMEROUS TRANSACTIONS OCCUR THAT HAVE NOTHING TO DO WITH FINAL GOODS AND SERVICES BEING PRODUCED:
- financial transactions

- transfer of secondhand goods

- other excluded transactions

400
LOANABLE FUNDSMARKET
Hypothetical market that  illustrates them market outcome of the demand for funds generated by borrowers and the supply of funds provided by lenders
400
PURCHASING POWER PARITY
An adjustment in exchange rate conversions that takes into account differences in the true cost of living across countries
500
WHY MUST THE DOLLAR VALUE OF TOTAL OUTPUT EQUAL TOTAL INCOME? 
Every transaction simultaneously involves an expenditure and a business receipt. 
500
AFRICAN SLAVE TRADE EQUAL
Hurt smaller societies within africa
500
GDP'S LIMITATIONS:


It excludes nonmarket production
500
LIFE INSURANCE COMPANY 
Sells policies that gurantee paymentto a policly holder's beneficiaries when the policy holder dies.
500
PER CAPITA REAL GDP
-Real GDP divided by total population 
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