GDP
What does GDP stand for?
Gross Domestic Product
Define "opportunity cost" in simple terms
The benefits of the option not chosen
Who is included in the labor force?
Civilians who are 16 years or older that are currently employed or actively looking for a job
Define and give an example of a negative externality
A good or service in which the cost is borne by a bystander
How many cards are in a standard deck of playing cards?
52
What does GDP measure?
The value of a country's final goods and services within one year
Define "comparative advantage" in simple terms.
Some countries/businesses are naturally better at producing certain goods due to resources, etc.
What are the three types of unemployment?
Frictional, structural, and cyclical
Define and give an example of a public good
A good that is nonexcludable (anyone can use it) and nonrival (one person's use will not affect another person's use)
According to Guinness World Records, what is the best-selling book of all time?
The Bible
What is the difference between nominal GDP and real GDP?
Real GDP is adjusted for inflation
Explain one likely effect of a tariff on imported goods
Producers raise prices for the consumers to offset the additional taxes
Define "structural" unemployment
Unemployment caused by an uneven balance of skills people have versus what is needed in the job market (developments in technology making some jobs obsolete)
How can government intervention address positive or negative externalities?
Subsidies, taxes, etc. can incentivize producers or consumers to react differently
Jim Henson is the creator of what beloved cast of characters?
The Muppets
If I bought a case of "Avocados from Mexico!" at the store yesterday, where does that money go towards?
Mexico's GDP
How do exchange rates influence international trade?
Changing prices cause competition when exchange rates are low
Sally is a college student working as a nanny for a local family. What is her role in the labor force?
She is not included in it (not currently looking for a job as a full-time student, and is working a nonmarket job)
Many roads are provided by governments. How are roads often treated as public goods, and what is one challenge in providing them?
Anyone can drive on roads, whether or not they pay taxes (free riders). Answers to challenges may vary (litter, pollution, traffic, potholes, etc.)
What is the only food that can never go bad?
Honey
Why is GDP per capita important?
It is an economic indicator of the standard of living within a country
Given that Country A has a lower opportunity cost producing wheat than Country B, explain why both countries could benefit from trading wheat and another good
Both countries specialize in their own goods, and can sell what they have a surplus of for the product that they need
Why is the unemployment rate so important to a nation's economy?
It is an economic indicator of the standard of living within a country
Name on solution to reducing pollution or food waste in the agricultural industry. What are the externalities associated with this problem?
Answers will vary, Mrs. Barker has final say
What flavor was Mrs. Barker's wedding cake?
Snickerdoodle