Measuring the Economy 1
What GDP stands for
What is Gross Domestic Product?
An extremely high and out-of-control rise in prices
The current unemployment rate in the US
What is 4.2%?
In this business type, the owner keeps all profits but is responsible for all debts and liabilities.
What is a sole proprietorship?
A period when the economy slows down
What is a recession?
The process where union representatives negotiate with employers on behalf of workers
What is collective bargaining?
The more _____ _____ you have, the more likely you are to get a good job and earn more money.
What is human capital?
GDP measured in current prices, not adjusted for inflation
What is nominal GDP?
The value of money in terms of how much it can buy.
What is purchasing power?
People who have stopped looking for work because they believe no jobs are available for them
What are discouraged workers?
A loan made by an investor to a business or government.
The highest point in the business cycle
What is a peak?
When union workers stop working to protest unfair conditions
What is a strike?
The calculation of the monetary value of an investment versus its cost.
What is return on investment?
GDP that has been adjusted for inflation
A common measure of inflation that tracks the average price of a "basket" of goods and services
What is the consumer price index?
Short-term unemployment that happens when people are between jobs, just graduated, or temporarily out of work by choice.
What is frictional unemployment?
This business is a legal entity that is separate from its owners.
What is a corporation?
The early part of expansion when the economy begins to grow again after a recession.
What is recovery?
A federal law passed in 1935 that protects workers' rights
What is the National Labor Relations Act?
The "bonus" income earned by workers with more education
What is wage premium?
GDP divided by the total population
What is GDP per capita?
When prices rise because the cost of making goods (like wages or raw materials) goes up.
What is cost-push inflation?
Unemployment caused by a downturn in the economy
What is cyclical unemployment?
The original company that sells the right to use its brand and system.
What is a franchisor?
A phase of the business cycle where the economy is growing
What is expansion?
A legal agreement that specifies the rights and responsibilities of employees and employers
What is a union contract?
Individuals who possess a completed academic degree earn higher incomes than individuals with an equivalent amount of education but without a degree
What is the sheepskin effect?
An increase in real GDP over time
What is economic growth?
When prices go up because consumer demand for goods and services increases faster than the economy can produce them
The peak unemployment rate during the Covid-19 recession
What is 14.8%?
A business structure that has some protection like a corporation but the tax benefits of a partnership or sole proprietorship.
What is a Limited Liability Company (LLC)?
Economic signs that come before a change in the business cycle
This strike began in West Virginia after B&O company cut wages for the third time in a year.
What is the The Great Railroad Strike of 1877?
Managing _____ _____ wisely is important to keep ROI positive
What is student debt?