Social Studies G.A 2.2

Question 1

economic model which illustrates the flow of goods and finances among economic agents.

Answer 1

Circular Flow Program

Question 2

refers to a market participant or institution that influences the flow of resources in the economy.

Answer 2

Economic agent

Question 3

result of the free interaction between households and firms.

Answer 3

Simple Economy

Question 4

are taxes mandatory

Answer 4

yes

Question 5

what are taxes

Answer 5

mandatory contributions by individuals and companies to the government.

Question 6

refer to government benefits and welfare payments such as pensions and welfare aids

Answer 6

Transfer payments

Question 7

what is a closed economy

Answer 7

self- sufficient and does not trade with other economies.

Question 8

short for aggregate supply and aggregate demand.
It follows the law of demand and law of supply.

Answer 8

AS-AD Model

Question 9

represents the amount of goods and services in the economy that will be consumed at different price levels.

Answer 9

AD curve

Question 10

AS curve

Answer 10

Represents the amount of goods and services available for consumption at different price levels.

Question 11

refers to the GDP that has been adjusted for inflation.
.

Answer 11

Real GDP

Question 12

GDP that has not taken into consideration the level of inflation.

Answer 12

Nominal GDP

Question 13

What are the factors that influence Aggregate demand

Answer 13

Cost of Production
Cost of Other Inputs
Use of Technology

Question 14

Cost of production

Answer 14

events or actions that make the cost of production expensive will shift the AS curve to the left.

Question 15

Cost of other inputs

Answer 15

the change in cost of other production inputs, such as labor and capital.

Question 16

Use of technology

Answer 16

he move from manual labor to technology- driven production methods that increase efficiency allows firms to produce more.

Question 17

What are the factors that influence Aggregate demand

Answer 17

Changes in income
Fluctuation in exchange rate

Question 18

rise in income enables and encourages consumers to avail of more goods and services.

Answer 18

Changes in income

Question 19

Exchange rate is the price of one currency in terms of another currency.

Answer 19

Fluctuation in exchange rate-

Question 20

Macroeconomic Indicators

Answer 20

Are statistics used to gauge the general health of the economy.

Question 21

What is a business cycle

Answer 21

upward and downward trend

Question 22

Depression

Answer 22

the long-term downward trend.

Question 23

The great depression

Answer 23

began in the United States. was the downturn in modern history. Triggered black thursday

Question 24

economic indicator that follows the same direction as the company

Answer 24

Procyclical

Question 25

economic indicator that follows the opposite direction as the company

Answer 25

Countercyclical

Question 26

no impact or unaffected by the movements of the economy

Answer 26

acyclical

Question 27

Timing of Change

Answer 27

Leading Indicators- before the economy lagging indicators - delayed reactions coincident indicators- almost simultaneously

Question 28

GDP as an Economic Measure

Answer 28

GDP High GDP value Increasing GDP declining GDP

Question 29

Income vs Expenditure Approach

Answer 29

Income- earnings of households, firms, government Expenditure- summing up expenses incurred by the same groups

Question 30

what is the bathtub theorem

Answer 30

changes in aggregate expenditure are caused by the leakages and injections in the circular flow

Question 31

expenditure leakages injections

Answer 31

expenditure- spending funds leakages- goes out of circular flow injections- allows money to go back to circular flow

Question 32

What is double counting

Answer 32

value of goods are taken into account twice

Question 33

what are excluded from GDP

Answer 33

intermediate goods, transfer payments, sale of second-hand goods, transactions in the underground economy, and non-market activities

Question 34

GNI

Answer 34

Gross National Income is an alternative measure of the size of the economy losing value over the years

Question 35

Net national product NNP

Answer 35

depreciation: GDP