Measuring the Economy Part 1

Front

What is the primary purpose of economic indicators?

Back

To measure the health of an economy

Front

What is hyperinflation?

Back

An extreme and rapid rise in the price of goods and services

Front

Which of the following is NOT a component of GDP? Household consumption (C), Business investment (I), Government purchases (G), Savings (S)

Back

Savings (S)

Front

What is the difference between nominal GDP and real GDP?

Back

Real GDP is adjusted for inflation, nominal GDP is not.

Front

What does per capita GDP measure?

Back

Average economic output per person

Front

Which type of unemployment occurs when workers are seeking their first job or transitioning between jobs?

Back

Frictional unemployment

Front

What is an example of structural unemployment? A graduate changing from a college job to a career, Self-checkout counters reducing the need for cashiers, Ski instructors at mountain resorts during the winter, Workers laid off during a recession

Back

Self-checkout counters reducing the need for cashiers

Front

Which type of unemployment is linked to economic decline in the business cycle?

Back

Cyclical unemployment

Front

What are discouraged workers?

Back

Unemployed workers who have stopped looking for work

Front

What is the informal economy?

Back

A sector of the economy operating without government regulation.