Flashcard on Gross Domestic Product (GDP)

Front

Gross Domestic Product (GDP) refers to

Back

the dollar value of all final goods and services produced within a country's borders in one year

Front

Which of the following is considered a part of GDP? Consumer Spending, Transfer Payments, Stocks and bonds, Used products

Back

Consumer Spending

Front

Which of the following is included in GDP?
An illegal sale of scalped tickets,
College students buy brand new textbooks,
A stay-at-home parent cleans their home,
The purchase of stocks on the NYSE

Back

College students buy brand new textbooks

Front

Which of the following purchases will be counted as part of business investment spending in a country's gross domestic product?
- Shares of a company stock
- A new car for personal use
- A newly constructed home
- A used truck for the family business

Back

A newly constructed home

Front

In the simplest circular-flow model, households supply _______ and demand _______.

Back

labor; goods and services

Front

Unemployment refers to

Back

Workers that are actively looking for work, but are not currently working

Front

Which of the following are considered unemployed? Your retired grandparent, An 18 year old who applied for work, A single parent looking for a second job, A prisoner serving a 20 year sentence

Back

An 18 year old who applied for work

Front

Which of the following is the best example of structural unemployment? New immigrants have a hard time finding jobs, Workers are laid off due to a recession, Workers are fired because they do not have the specific skills employers value, Workers enter the labor force because wages are increasing

Back

Workers are fired because they do not have the specific skills employers value

Front

Inflation can best be defined as

Back

The rising general level of prices and reduced purchasing power.

Front

Which type of unemployment would most likely increase if workers are laid off due to a recession?

Back

Cyclical