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Economic Growth Flashcards | StudBud
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Economic Growth
Economic Growth
15 terms
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StudBud Administration
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11,900 plays
Covers business cycle, GDP, unemployment, inflation, trade
Flashcards
15 cards
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Questions
15
Answers
1
This phase of the business cycle shows economic growth
Expansion
Peak
Trough
Contraction
2
Inflation is...
Reduces purchasing power
Measured by the Consumer Price Index (CPI)
Is a good thing for the economy
Overall increase of prices over time
3
The labor force is the total number of people who are employed and unemployed (available for work)
False
True
4
Why are countries concerned about economic growth?
Growing countries produce more goods and services for citizens.
Reduced standard of living per person with economic growth.
A better standard of living for citizens.
5
Nations that choose to specialize in producing a specific good or service have what type of advantage?
absolute advantage
comparative advantage
voluntary exchange advantage
trade advantage
6
What are some factors that contribute to economic growth?
technological innovation, high investment in human capital
Strong incentives to save and invest, free trade
Political stability, economic freedom, and a slow rate of population growth
high rate of population to replace labor force
7
Unemployment in the US is...
the percentage of non-working adults that only want full time employment
the percentage of adults who are not working
the percentage of the labor force that is unemployed
8
The total market value of all final goods and services adjusted for inflation is
Gross Domestic Product
nominal GDP
GDP
real GDP
9
Some problems with our unemployment measure is...
discouraged workers and part-time workers are not included
does not reflect movements from full time to part time work
Does not reflect wage rates
10
When the economy has reached its maximum level of growth, we are in what phase?
contraction
peak
expansion
trough
11
A consequence of inflation is reduced purchasing power and decreased standard of living
True
False
12
Our economy is in a recession when in...
The contraction phase for more than 2 quarters
The contraction phase
The contraction phase for at least 1 quarter
A trough
13
The value of a currency expressed in terms of the amount of good or services that one unit of money can buy is....
Inflation
Purchasing power
Consumer Price Index (CPI)
Market Basket
14
GDP measured per person is ...
is GDP
used to measure well being of citizens
used to measure standard of living
is GDP per capita
15
The business cycle...
shows the rise and fall of production output of goods and services
Is measured by GDP (gross domestic product)
Is a lagging indicator
Is not a good indicator or inflation
