Unit 5 Review Flashcards
Which of the following is not used for national income accounting?
Labor
The dollar value of all final G&S produced in a nation’s borders
GDP
The following is used to compute GDP by adding up all the money spent by the people of a nation
Expenditure Approach
The following is used to compute GDP by adding all the money earned by the people in a country.
Income Approach
What is GDP called that is calculated in today’’s dollars?
Nominal GDP
What is GDP called that is calculated in inflated dollars?
Real GDP
The limitations of calculating GDP because people often do many things for themselves.
Nonmarket Activities
The limitations of calculating GDP because people are engaged in illegal activity.
Underground Economy
The limitations of calculating GDP because it is impossible to measure happiness.
Quality of Life
The limitations of calculating GDP because of unintended side effects of economic activity.
Negative Externalities
The phase of the business cycle that depicts economic growth
Expansion
The phase of the business cycle where GDP reaches its lowest point before economic growth.
Trough
The phase of the business cycle where GDP reaches the highest point before economic decline
Peak
The phase of the business cycle that depicts a decline in GDP.
Contraction
Buying new equipment can cause which of the following?
Creates more jobs, Produce more goods, Expand the business cycle
What signal does low interest rates send to the people in the economy?
Buy more, Expand your businesses
What signal does high interest rates send to the people in the economy?
Don’t borrow
How can consumer expectations cause the economy to fail?
They will stop buying G&S
September 11th is an example of an ____________ shock
External
Which of the following is not a leading economic indicator?
Boarding Rates
What is gained with capital deepening within an economy?
Hum capital is increased, Physical Capital is increased
The type of unemployment where people are taking their time to find a new job.
Frictional Unemployment
Unemployment that occurs when workers do not have the skills needed to be successful.
Structural Unemployment
Types of unemployment when workers only work certain times of the year.
Seasonal Unemployment
Type of unemployment that occurs due to a recession or downturn in the economy
Cyclical Unemployment
Which of the following is considered full employment?
4-6%
What do we consider a person with a masters degree working at a coffee shop?
Underemployed
What do we consider workers that have given up looking for a job?
Discouraged worker
Which of the following is a reason for the income gap in America?
Skills & Education, Inheritance, Field of Work
What is one of the major causes of poverty in America?
Lack of Education, Divorce, Discrimination, Manufacturing to service jobs
Which of the following are included in traditional antipoverty programs?
Food Stamps & Education
Which of the following were included in the new antipoverty programs?
Job skills class
The index that accounts for the cost of household goods.
Consumer Price Index (CPI)
(market basket)
Inflation that occurs at a rate of 1–3%.
Creeping Inflation
Inflation that occurs at a rate of over 100%
Hyper Inflation
Inflation that occurs at a rate of 4-99%.
Galloping Inflation
What is the theory economist use for one of the causes of inflation?
The Quantity Theory
What causes cost-push inflation?
What causes cost-push inflation?
What causes demand-pull inflation?
Consumers spending too much
Which of the following are effects of inflation?
Purchasing power is reduced
