Ch 6 Economic Activity

Market value of all final products produced in a country during a specific time period.

• consumer price index (CPI)

• gross domestic product (GDP)

• interest rate

• inflation rate

Financial well-being of the average person in a country

• standard of living

• specialization

• money supply

• monetary policy

General rise in prices throughout the economy -

• peak

• stock market

• externality

• inflation

Calculated as the rate of change in prices over a period of time, usually monthly or yearly, and expressed as a percent.

• inflation rate

• interest rate

• consumer price index (CPI)

• price-fixing

Measure of the average change in the prices paid by consumers for typical consumer goods and services over time.

• stock market

• standard of living

• price competition

• consumer price index (CPI)

The interest rate on a loan is NOT determined by the forces of supply and demand

• True

• False

The total labor force includes civilian workers as well as those who are in the military.

• True

• False

Even when the economy is considered to be at full employment, the unemployment rate is still about 4%.

• True

• False

Trying to produce all the products to meet all the needs of every consumer is always efficient and profitable.

• True

• False

When the value of the stock market increases, it indicates the value of businesses are rising.

• True

• False