Macroeconomics

Question 1

National income and product accounts

Answer 1

Keep track of the flows of money between different sectors of the economy

Question 2

Consumer Spending

Answer 2

Household Spending on Goods and Services

Question 3

Stock

Answer 3

Share in the ownership of a company

Question 4

Bond

Answer 4

Borrowing in the form of an IOU that pays interest

Question 5

Government transfers

Answer 5

Payments by the government to individuals for which no good or service is provided in return, e.g. Kindergeld

Question 6

Disposable income

Answer 6

Income plus goverment transfers - fixed cost; total amount of household income available to spend on consumption and savings

Question 7

Employment

Answer 7

Number of people currently employer in the economy (full and part time)

Question 8

Unemployment

Answer 8

Number of people actively looking for work (currently unemployd)

Question 9

Labor force

Answer 9

Sum of employment and unemployment

Question 10

Labor force participation rate

Answer 10

Percentage of people 16 or older in labor force

Question 11

Unemployment rate

Answer 11

Percentage of people in labor force that are unemployd

Question 12

Discouraged workers

Answer 12

Nonworking people capable of working have given up looking for a job given the state of the job market

Question 13

Marginally Attached workers

Answer 13

Would like to be employed, have looked for a job in the recent past but currently aren’t looking for work

Question 14

Efficiency wages

Answer 14

Wages that employers set above the equilibrium wage rate as an incentive for better employee performance