social 12 (econ)- chapter 10

Question 1

the process used for tracking production, income, and consumption in a nation’s economy

Answer 1

national income accounting

Question 2

includes spending on residential and nonresidential structures such as office space and factories, and capital goods such as machinery and office equipment

Answer 2

fixed investment

Question 3

increase or decrease in the total dollar amount of the stock of raw materials, intermediate goods, and final goods of domestic business during a given period

Answer 3

inventory investment

Question 4

expenditures for which the gov receives no goods or services in exchange. includes social security payments and various types of government aid

Answer 4

transfer payments

Question 5

goods and services used to make products

Answer 5

intermediate goods

Question 6

GDP adjusted for price changes

Answer 6

real GDP

Question 7

an increase in the real dollar value of all final goods and services that are produced per person for a specified period of time

Answer 7

real GDP per capita

Question 8

a measure of how much each worker produces in a given period of time

Answer 8

labor productivity

Question 9

an increase in the output of each worker per hour of work

Answer 9

productivity growth

Question 10

the amount of capital stock available per worker

Answer 10

capital to labor ratio

Question 11

a increase in the amount of capital goods available per worker

Answer 11

capital deepening

Question 12

gross domestic product

Answer 12

the total dollar value of all final goods and services produced within a country in a given calendar year

Question 13

durable goods

Answer 13

items that have a useful lifetime of more than a year (automobiles, computers)

Question 14

nondurable goods

Answer 14

items that have a short useful lifetime (food, cosmetics)

Question 15

business cycle

Answer 15

changes is a market system’s economic activity

Question 16

expansion

Answer 16

a period of economic expansion and growth

Question 17

peak

Answer 17

a high point at which the economy is at its strongest and most prosperous

Question 18

contraction

Answer 18

a period of business slowdown

Question 19

recession

Answer 19

a decline in real GDP for two or more consecutive quarters

Question 20

depression

Answer 20

a prolonged and severe recession such as the great depression

Question 21

trough

Answer 21

final stage in the business cycle which occurs when demand, production, and unemployment reach their lowest levels

Question 22

leading indicators

Answer 22

anticipate the direction in which the economy is headed

Question 23

coincident indicators

Answer 23

provide info about the current status of the economy

Question 24

lagging indicators

Answer 24

help economists predict the duration of economic upturns or downturns

Question 25

standard of living

Answer 25

the economic well being of a nation’s people

Question 26

what is the formula for GDP?

Answer 26

C+I+G+(X-M)= GDP

Question 27

C

Answer 27

personal consumption expenditures

Question 28

I

Answer 28

gross investment

Question 29

G

Answer 29

government purchases

Question 30

X-M

Answer 30

net exports

Question 31

what are the four limitations of GDP?

Answer 31

1. Accuracy and Timeliness of Data
2. Nonmarket Activities
3. Underground Economy
4. “Goods” and “bads”