One component of gross domestic product is the value of a country’s exports plus the value of the imports into the country.

The more goods and services produced, the healthier an economy is considered to be.

Mikayla is a 14-year-old student. She would not be considered part of the labor force in the United States.

In the United States, all people over the age of 21 who do not have a full-time, paying job are considered “unemployed.”

An ability to produce more goods and services in less time makes it possible to reduce the number of hours in a workweek.

Stanley receives a monthly Social Security check from the U.S. government. This would not be counted when measuring Stanley’s personal income.

Business cycles are the recurring ups and downs of gross domestic product.

During periods of deflation, prices drop so demand increases greatly.

The money for capital projects comes from three main sources: stock investments, bonds, and personal savings.

GDP measures a country’s economic output during

GDP does not include

Which of these items would be counted when measuring GDP?

Dividing GDP by the total population of a country results in that country’s

All of the following people are part of the labor force EXCEPT

If wages increase faster than gains in productivity, prices will rise. Why?

In the early 1890s, the average employee in the United States worked about how many hours per week?

Which of the following probably would result in a DECREASE in worker productivity?

Retail sales

Which of the following is NOT a characteristic of a depression?

A recession often affects some groups of workers in related businesses. The drop in related businesses is called

Inflation

Suppose wages are going up faster than prices. What is the most likely effect?

The interest rate banks charge their best business customers is the

The major influence on the level of interest rates is

Which of the following is an example of a capital project?

If you purchase a corporate or government bond, you are a(n)

The money people deposit in banks and other financial institutions

Gross ________________ product is the total value of all final goods and services in a country in one year.

The portion of people in the labor force who are not working but are looking for work is the ________________ rate.

33. ________________ is the production output in relation to a unit of input, such as a worker.

34. Personal ________________ refers to salaries and wages as well as investment income and government payments to individuals.

35. Retail sales include the sales of durable and nondurable goods bought by ________________ .

The movement of the economy from one condition to another and back again is called a business ________________ .

37. ________________ is a period in the business cycle when demand begins to decrease, businesses lower production, and GDP growth slows for two or more quarters of the calendar year.

An economic ________________ is the phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again.

39. ________________ is an increase in the general level of prices.

The ________________ bond rate is the cost of borrowing for large U.S. corporations.

41. ________________ spending refers to money spent by a business for an item that will be used over a long period of time.

42. ________________ represents ownership, or equity, in a corporation.

A bond represents ________________ for an organization.

When a government spends less than it takes in, a budget ________________ is the result.

Gross domestic product is defined as:

46. The main cause of unemployment is:

Briefly explain the difference between a recession and a depression.

Explain how mild inflation can stimulate economic growth.

Fill in the blank: Productivity refers to the efficiency with which goods and services are produced, often measured as output per unit of input.

Fill in the blank: ___ is the money received, especially on a regular basis, for work or through investments.

Fill in the blank: Consumers are people or organizations that use goods and services.

Fill in the blank: A cycle refers to a series of events that are regularly repeated in the same order.

Fill in the blank: A recession is a period of temporary economic decline during which trade and industrial activity are reduced.

Fill in the blank: Recovery is the process of returning to a normal state after a period of difficulty, such as an economic downturn.

Fill in the blank: Inflation is the general increase in prices and fall in the purchasing value of money.

Fill in the blank: Corporate refers to anything related to a corporation, which is a company or group of people authorized to act as a single entity.

Fill in the blank: Capital is wealth in the form of money or assets, used to start or maintain a business.

Fill in the blank: refers to shares of ownership in a corporation.

Fill in the blank: Debt is money that is owed or due to another party.

Fill in the blank: Surplus is an amount of something left over when requirements have been met; an excess of production or supply.

Fill in the blank: ___ is the total dollar value of all final goods and services produced in a country during one year.

Fill in the blank: The main cause of unemployment is ___ .

Fill in the blank: A recession is a period following a prosperous time in the business cycle. It is characterized by

Fill in the blank: During a mild inflationary period, wages can rise more slowly than prices. The prices of products are high in relation to the cost of labor, resulting in higher profits for the producer.