Unit 2 Review Sheet

What does GDP stand for?

• Gross Domestic Product

• General Domestic Policy

• Gross Development Plan

• Global Domestic Product

What is GDP per capita?

• Gross Domestic Product divided by the population

• Gross Domestic Product multiplied by the inflation rate

• Gross Domestic Product minus government spending

• Gross Domestic Product divided by the number of companies

What is an Interest Rate?

• The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

• A type of tax imposed on goods and services.

• The total amount of money borrowed from a bank.

• A fee paid for insurance coverage.

What is a Mixed Economy?

• An economic system combining private and public enterprise.

• An economy based solely on barter system.

• An economy where only the government controls all resources.

• An economic system with no government intervention at all.

What is Socialism?

• A political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

• A system where private individuals own all property and businesses.

• A philosophy that supports absolute monarchy and hereditary rule.

• A belief in the complete absence of government and laws.

What is a Recession?

• A period of temporary economic decline during which trade and industrial activity are reduced.

• A time of rapid economic growth and prosperity.

• A government policy to increase employment.

• A type of financial investment strategy.

What is Inflation?

• A general increase in prices and fall in the purchasing value of money.

• A decrease in the supply of money in the market.

• A sudden increase in employment rates.

• A reduction in the cost of living.

What is the Consumer Price Index?

• An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

• A measure of the total output produced by a country in a year.

• An index that tracks the stock market performance of major companies.

• A tool used to calculate the unemployment rate in urban areas.

What is Free Enterprise?

• An economic system in which private business operates in competition and largely free of state control.

• A system where the government owns all businesses and resources.

• A barter system with no use of money or trade.

• A type of economy where only one company controls the entire market.

What is Unemployment?

• The state of being without a job despite actively looking for work.

• The state of being employed in a high-paying job.

• The process of starting a new business.

• The act of retiring from work.