question
equation that reps the relationship between GDP and 4 major expenditure components?
answer
Y= C+ I+ G+NX
question
4 major expenditures
answer
consumption
intermediate goods
government purchases
new expenditures
intermediate goods
government purchases
new expenditures
question
diff between value of a firms final product and value added by the firm to the final product
answer
the value of a firms final product is the sale price..
value added is the difference between the sale price and the price of intermediate goods
value added is the difference between the sale price and the price of intermediate goods
question
is the value of interdiate goods and services produced during the year included in the GDP. for ex- is a computer chip used to priduce new PC included in GDP?
answer
Yes, the value of the pc chip is not directly counted in GDP but the production of a computer chip is included in the value- added method of measuring GDP
question
to calculate GDP deflator
answer
Nominal GDP divided by Real GDP times 100
question
to get NOMINAL GDP
answer
quanity times price (exclude big number last number)
question
to get REAL gdp
answer
to quanity times price of base year (exclude big number)
question
to calculate percentage
answer
real GDP later year - real GDP earlier year divided by earlier year times 100
question
calculate unemployment rate
answer
number of unemplyed divided by labor force times 100
question
people are said to be frictionally unemplyed when
answer
they are between jobs and searching for a new job
question
structurally unemployed
answer
a persistant mismatch between the job skills or attributes of workers and the requiements of jobs
question
cyclical unemplyed
answer
workers who lose their jobs bc of a recession
question
tariff
answer
a tax imposed by a government on imports of a good into a country (increases the cost of a selling good)
question
imports
answer
goods and services bough domestically but produced in other countries
question
exports
answer
are goods and services produced domestically but sold in other countries
question
autarky
answer
a situation in which a country does not trade with other countries
question
terms of trade
answer
the ratio at which a country can trade its exports for imports from other countries
question
we dont see complete specialzation in the real world bc of three reasons
answer
1. not all goods and services are traded internationaly
2 production of most goods involves increasing oppurtunity costs
3. tastes for products differ
2 production of most goods involves increasing oppurtunity costs
3. tastes for products differ
question
free trade
answer
trade between counties that is without government restrictions
question
quota
answer
a numerical limit a government imposes on the quanitity of a good that can be imported into the country
question
VER- voluntary export restraint
answer
an agreement negotiated between two counties that places a numerical limit on the quanitity of a good that can be imported by one country from the other
question
word trade organization
answer
an international organization that oversees international trade agreements
question
globalization
answer
the process of countries becoming more open to foreign trade and investment
question
protectionism
answer
the use of trade barriers to shield domestic firms from forgein competition
question
dumping
answer
selling a product for a price below its cost of prodcution
question
the buisness cycle
answer
peak- tip top
recession- moving down from a peak (6 months)
trough- very lowest period
recovery/ expasiom- moving up
recession- moving down from a peak (6 months)
trough- very lowest period
recovery/ expasiom- moving up
question
inflation rate-
answer
the % increase in the price level from one year to the next
question
GDP- gross domestic product
answer
the market VALUE of all final goods and services produced in a country during a period of time, typically one year
question
final good/ serive
answer
a good or service purchased by a final useer (hamburger for a consumer, or a computer purchased from a buisncess)
question
intermediate good
answer
a good/serive that is an input into another good or serive, such as a tire..tires are an example.. not a final good
question
transfer payments
answer
payments by the government to households for which the government does not receive a new good or service in return.
-public
-private
-stocks
-public
-private
-stocks
question
consumptiopn
answer
spending by household on goods or services not including spending on a new house
(services- hair cuts, medicare, education, haircuts)
(durable goods- cars, furniture)
(services- hair cuts, medicare, education, haircuts)
(durable goods- cars, furniture)
question
invetments
answer
spending by firms on a new factory, office building, spending by housesholdws and firms on a new house
question
government purchases
answer
spending by federal, state and local governments on goods and services(teachers saleries highways)
question
net exports
answer
exports(made in US) minus imports(purchased by us)
question
value added
answer
another way of calculating GDP is the value added method which refers to the additional market value a firm gives to a product and is equal to the difference between the price for which the firm sells a good and the price it paid other firms for intermediate goods
question
nominal gdp
answer
value of a final good and serive evaluated at current year prices
question
real ggdp
answer
value of g and s evaluated at base year prices
question
consumer surplus
answer
below demand curve and above the price
question
producer surplus
answer
above the SUPPLY curve and below the price
question
TO CALCULATE REVENUE
answer
price times quanitity!
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
