question
what does economic growth refers to
answer
a steady increase
in the production of goods and services in
the economic system
in the production of goods and services in
the economic system
question
One way to find out how well an economy
is doing...
is doing...
answer
compare computer output from
year to year
year to year
question
What is GDP?
answer
Gross Domestic Product
question
What is economic growth?
answer
a steady increase
in the production of goods and services in
the economic system
in the production of goods and services in
the economic system
question
What is the most widely used measure of output?
answer
Gross Domestic Product(GDP)
question
What is Gross Domestic Product?
answer
the total value of goods and services produced in a country in a year
question
4 major components of GDP
answer
1. consumer spending for food, clothing, housing and other goods and services
2. business spending for buildings, equipment, and inventory
3. government spending to pay employees & to buy supplies and other goods and services
4. The exports of a country shorten the imports into the country
2. business spending for buildings, equipment, and inventory
3. government spending to pay employees & to buy supplies and other goods and services
4. The exports of a country shorten the imports into the country
question
What is the GDP increasing a sign of?
answer
growing & healthy economy
question
What is GDP per capita?
answer
GDP divided by population
question
What is Unemployment Rate?
answer
portion of people in labor force who aint workin
question
What's the main cause of unemployment rate?
answer
Reduced demand for goods and services by various workers
question
4 components of unemployment
answer
1. Seasonal - lose jobs due to weather changes
2. Frictional - layoff, firing, own choice
3. Cynical - lose jobs due to changes in the business cycle
4. Structural - lose jobs to technological advances
2. Frictional - layoff, firing, own choice
3. Cynical - lose jobs due to changes in the business cycle
4. Structural - lose jobs to technological advances
question
What's productivity?
answer
The production output in relation to a unit of input
question
What's personal income?
answer
Salary and wages as well as investment income and government payments to individuals
question
What are retail sales and what do they indicate?
answer
sales of durable and nondurable goods bought by customers, indicates consumer spending patterns and economic growth
question
(4)Phases of Business Cycle
answer
prosperity(GDP growth), recession(higher demand), depression(unemployment), recover(employment increases)
question
Whats inflation and a cause?
answer
increase in general price level of goods and services, caused by greater supply than demand
question
What is Consumer Price Index(CPI)?
answer
one of the most watched measures of inflation
question
What's Prime rate?
answer
The rate banks make available to their best customers
question
Discount Rate
answer
The rate which financial institutions are charged to borrow funds from the federal reserves
question
Mortgage rate
answer
the amount people pay to borrow purchasing their home
question
Capital Spending
answer
The money spent by a business for an item that will be used over a long period of time
question
Capital Projects
answer
money spent on stuff like land, buildings, equipment, product development
question
Bond
answer
its money you get in return from paying interest
question
Equity
answer
value of shares distrubuted by a company
question
Stock
answer
Portion of ownership
question
What does increase/decrease of GDP show?
answer
healthy/unhealthy economy
question
What does increase/decrease of GDP per capita indicate for economy?
answer
growing/nongrowing economy
question
Causes and effects of mild inflation.
answer
Cause - demand for goods and services is greater than supply
Effect - Inflation
Effect - Inflation
question
Causes and effects of deflation.
answer
Cause - decrease in general price level of goods and services
Effect - deflation
Effect - deflation
question
budget defecit
answer
spending more than what you get
question
effects of budget deficit
answer
debt
question
What is a price index?
answer
the number that compares prices in one year in sum earlier base year
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
