GDP Flashcards

1
Q

GDP

A

Gross Domestic Product: a monetary measure of the market value of all the final goods and services produced and sold in a specific time period by countries.

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2
Q

Final Good

A

A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs. Example: Dishwasher

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3
Q

Intermediate Good

A

Used to produce other goods. Example: Cake Mix

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4
Q

GDP Equation

A

The total market value of final goods and services produced in the economy during a period of time.

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5
Q

Your father buys a new John Deere riding lawn mower.

A

Final Good.

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6
Q

Business Cycle

A

Fluctuations in economic activity, such as employment and production.

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7
Q

Business Cycle Expansion

A

A period during which total production and total employment are increasing.

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8
Q

During a business cycle expansion, total production _______ and the total employment _______

A

Increases and Increases

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9
Q

GDP does not include

A

household production

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10
Q

The size of the underground economy would tend to decrease if the government of a country

A

decreased government regulations on business.

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11
Q

Suppose Bob works for Mary as a proofreader. Mary and Bob marry and have six children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?

A

GDP will decrease

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