Ch 12 Vocab Flashcards
The branch of economics that deals with the economy as a whole. It keeps track of the nation’s production, consumption, saving, investment, and income.
Macroeconomics
A comprehensive measure of national output. Is defined as the total market value of all final goods produced within a country’s borders during a 12-month period.
Gross Domestic Product
Goods used to make other products that are already counted in GDP–excluded from GDP.
Intermediate Goods
The sales of used goods; all forms of previously owned goods–excluded from GDP.
Secondhand Goods
Economic activities that do not generate expenditures in the market–excluded from GDP.
Nonmarket Activities
Economic activities that are not reported for legal or taxa collection purposes–excluded from GDP.
Underground Economy
The output in any given year that is measured using the actual prices that existed in that year.
Current GDP
GDP measured with a set of constant base year prices–a year that serves as the basis of comparison for all other years.
Real GDP
Real GDP divided by the population, gets the amount of output on a per-person basis.
Real GDP Per Capita
The benchmark used to evaluate the income that people receive.
Poverty Threshold
Government-issued coupons that can be redeemed for food and may be given or sold to eligible low-income people.
Food Stamps
Economic and social assistance from the government or private agencies because of need.
Welfare
A joint federal-state medical insurance program for low-income people.
Medicaid
Provides federal tax credits and even cash to low-income workers
Earned Income Credit
Areas where companies can locate free of some local, state, and federal tax laws and other operating restrictions.
Enterprise Zones
