GDP
Business Cycle
Unemployment
Inflation
Poverty
100
How is GDP defined?
The value of all finished goods and services within a year.
100
List the four phases of the Business Cycle.
Contraction, trough, expansion, peak.
100
Who makes up the labor force?
16 years of age and older who are either employed or are actively looking for employment.
100
What is inflation and deflation?
Inflation is a general increase in prices. Deflation is the drop in the prices.
100
What is the current world poverty line?
$1.25 a day
200
List 2 examples each for durable and non-durable goods?
Durable- Car, refrigerators, dishwashers. Non-durable goods- Food, shoes.
200
What is the trough and peak? Give an example of each.
Answers will vary.
200
Name the 4 types of unemployment.
Frictional, Seasonal, Structural, Cyclical.
200
What is purchasing power?
The more a product costs, the less power the consumer has.
200
What are two government policies they use to help individuals in poverty?
Employment assistance, Welfare reform, TNAF, Food Stamps.
300
What is the formula to calculate GDP?
GDP=Consumer spending+Investments+Government Spending+(Exports-Imports)
300
When unemployment rate decreases in a economy, what phase in the cycle is the economy experiencing?
Expansion
300
What is underemployment? Give an example.
The individual is overqualified for their job. Answer will vary.
300
What are the 3 causes of inflation? (The 3 theories)
The Quantity theory, Demand pull theory, Cost-push theory.
300
What is poverty threshold in the U.S.?
An income level below which income is insufficient to support a family or household.
400
What is the difference between real and nominal GDP?
-Nominal GDP is GDP measured in current prices. ?It does not account for price level increases from year to year. -Real GDP is GDP expressed in constant, or unchanging, dollars.
400
What other factors can increase or decrease a country's economic growth?
Population growth, Foreign Trade,War, Technology, Capital Deepening, and Government.
400
What is full employment and what is the unemployment rate?
When no cyclical employment exists. Unemployment rate is between 4%-6%.
400
What are the effects of inflation? (When inflation increases what is impacted the most?)
Purchasing power, Income, and Interest rates?
400
What are some causes of poverty?
Lack of Education, Location, Shifts in Family Structure, Economic shifts, and Racial and Gender Discrimination
500
List 3 of the 4 limitations of GDP. (What is not counted for in GDP)
Non-market activities (Mowing your own lawn), Negative Externalities (War, pollution), Underground economy, Quality of Life (Leisurely time)
500
List 3 of the 4 causes that keeps the business cycle going?
Business Investment, interest rates and credit, consumer expectations, external shocks.
500
What are the 3 requirements to be employed.
1. Worked at least 1 hour for pay within the past week. 2. Worked 15+ hours w/o pay in a family business. 3. Held a job, but didn’t work due to illness, vacations, labor disputes, or bad weather.
500
What is the cost-push theory?
Cost-push theory, inflation occurs when producers raise prices in order to meet increased costs.
500
What region is considered the poorest in the world? Why?
Africa, answers will vary.
M
e
n
u