Gross Domestic Product
The Business Cycle
Unemployment
Wages and Labor
Types of Unemployment
100
What is the sum of the prices of all final goods and services within one country?
Gross Domestic Product
100
What is the growth and decline of an economy as economic activity increases and decreases periodically
The Business Cycle
100
Who counts as unemployed?
A person who is jobless and actively looking for work for the past 4 weeks
100
What is it when companies send jobs and work abroad usually to save on costs?
Offshoring
100
When people lose their jobs because the job is temporary due to a season, they are _________?
Seasonally unemployed
200
What is Real GDP divided by the country's population called?
GDP per Capita
200
What do we call an economic decline usually lasting at least 6 months?
Recession
200
Wanda is 15 years old and works as a bus boy at her dad's diner? Is Wanda part of the labor force?
No, she is not 16 years of age.
200
What type of labor includes jobs that require highly specialized skills or that often require more education or training such as a trade school degree or apprenticeship?
Skilled Labor
200
Fergie the grape picker is jobless because it is winter. What type of unemployed is Fergie?
Seasonally unemployed.
300
Measuring GDP helps us understand what?
Possible answers:
-If the economy is growing/expanding, stagnating, or shrinking/contracting
-An country's economic output in a year
-The value of the goods/services a country produced in a year
300
Label the phases of the business cycle.
1 - Peak
2 - Contraction
3 - Trough
4- Expansion
300
A person who needs a job, wants a job, but has not actively looked for work in the past 4 weeks is known as what?
Discouraged worker
300
Pepito has recieved training for his new job the past 50 days. His job would be considered what kind of labor?
Semiskilled Labor
300
Carlito got laid off from his job due to an economic recession. He is considered _________?
Cyclically unemployed
400
What is the formula to calculate Gross Domestic Product?
GDP = C + I + G + NX
400
If a country's Real GDP is rising over several months/years, a country is in what phase of the business cycle?
Expansion phase
400
What is the unemployment rate formula?
400
Who is considered part of the labor force?
Anyone aged 16 and over who is looking for a job or already has one
400
What is the criteria for being a part of the labor force?
-Employed
-Unemployed (actively looking for work in the past 4 weeks)
-16 years of age
500
What is counted when calculating Gross Domestic Product? In other words, what do the variables of the GDP formula stand for?
C - Consumption: the prices of all final goods and services purchased by consumers
I - Business Investments: money businesses have spent on capital goods (buildings, machines, etc.) AND any unsold goods that were produced that year
G - Government Spending: money that any level of government has spent
NX - Net Exports: A country's exports minus imports
500
The below graph shows the United States' unemployment rate from 2005 to 2009.
Based on the graph's trend, the United States economy is in what phase of the business cycle?
Contraction Phase
500
Moises has a PhD in neuroscience but is currently working at McDonald's. Moises is considered________?
Underemployed
500
What are the four types of labor?
Unskilled labor
Semiskilled labor
Skilled Labor
Professional Labor
500
What are the four types of unemployment and what do they mean?
Seasonal Unemployment: When people lose their jobs because the job is temporary due to a season
Structural Unemployment: When people lose their jobs due to their job being removed from the economy, usually due to technology
Cyclical Unemployment: When people lose their jobs due to a recession or contracting economy
Frictional Unemployment: When people are entering the workforce for the first time or are between jobs because they’re looking for a better one