GDP
What is GDP?
GDP is the total value of all final goods and services produced in a country in one year.
Which trade barrier is a tax that is placed on imports?
Tariff
What is the business cycle?
It measures the growth and decline of economic activity over multiple years.
True or false: for a contraction to be considered a recession, it must last at least two quarters (six months).
True!
Which of the following items IS counted in GDP?
Stock Market, Social Security, Intermediate Goods, Final Goods
Final goods
Which of the following trade barriers is a complete ban on trade with another country, usually for political reasons?
Embargo
Todd was just laid off from his job due to an economic downturn. What type of unemployment is he experiencing?
Cyclical
Who is included in the unemployment rate?
All jobless people in an economy who are actively looking for work.
Which part of GDP counts as a negative number?
Imports
What is said to be a normal, healthy rate of inflation for the U.S. economy?
2-3%
In the summer, Ashley works for a local farmer. She picks strawberries so she can save up for college. Once winter hits, she stops working in the fields and looks for a new job. What type of unemployment is she experiencing?
Seasonal
Which of the following terms refers to the trade between countries and markets around the world that has been increasing ever since the end of World War II?
Globalization
Which of the following accounts for the biggest portion of GDP in the United States?
Cosumption
What is the main task of the Federal Reserve in the United States?
Keep the economy stable with low inflation and low unemployment.
Charlie’s father used to work in a factory twisting lids onto bottles. However, his father was recently laid off because the company purchased a robot that can do the job more efficiently. What type of unemployment is he experiencing?
Structural
What does a high unemployment rate usually signify?
The economy is in a recession.
What is the Formula for GDP?
C.I.G.I-E
Consumption
Investment
Government Spending
Imports-Exports
Which of the following helps economists better understand a nation’s standard of living by comparing across different populations?
GDP per capita
Eleanor is a senior in high school who tutors a freshman in high school. In exchange, she only receives tutoring for a class that she is struggling in. How would she be categorized by the BLS?
Not in the Labor Force
Which of the following is used to measure inflation from year to year?
Consumer Price Index (CPI)
Identify and define each phase of the business cycle. (4 points, 1 point per phase)
Expansion, Peak, Contraction, Trough