Chapter 2 Quiz Flashcards
GDP
the total value of all final goods and services produced in a country in one year.
gdp per capita
output per person. calculated by dividing gpd by total population.
unemployment rate
the protion of people in the labor force who are not working.
productivity
the production output in relation to a unit of input, such as a worker.
personal income
salaries and wages as well as investment income and government payments to individuals.
retail sales
the sales of durable and non durable goods bought by customers.
business cycle
the movement of the economy form one direction to another.
prosperity
a period in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and GDP growth increases.
recession
a period in which demand decreases, businesses lower production, unemployment rises, and gdp growth slows for 2 quarters.
depression
a long period of high unemployment, weak consumer sales, and business failures.
recovery
the phase in which unemployment begins to decrease, demands for goods and services increase, and gdp begins to rise again.
inflation
an increase in general level of prices
price index
a number that compares prices in one year with prices in some earlier base year.
deflation
a decrease in the general level prices.
capital projects
involve spending by businesses fro items such as land, buildings, equipment, and new product development.
