Eco review

Gross National Product (GNP)

market value, in dollar amounts, of all final goods and services produced by domestically owned factors of production

Gross Domestic Product (GDP)

market value, in dollar amounts, of all final goods and services produced within a country's borders

total income

money earned from all producers in a country

unemployment insurance

money that the government gives to unemployed people who meet certain requirements (lost job because of economy; NOT for people who quit)

interest rate

price of money that is borrowed or saved

material goods

products that are bought and sold, including food, clothes, computers, and cars

investment

putting money into something financial, in hopes of earning more money

Human Development Index (HDI)

quality of life measurement that includes a form of GDP per capita, how long people are expected to live, and education

economic cycle

time from one economic peak to another economic peak; behavioral pattern in the economy that includes growing and shrinking phases

deride

to put down or show contempt for a person

lambaste

to strongly criticize a person over decisions that have been made

national debt

total amount of money the federal government owes

monetary policy

when the central bank uses money supply and interest rates to affect a country's economy

The machines used to make cars are examples of _____. capital goods natural resources human resources

A

You own a monopoly in a new computer game market, where you have _____ market share. A. 100 percent B. limited C. zero

a

Sabina makes $2,000 per month. She spends $300 on credit card payments and $450 on an auto loan. Does she have excessive debt? A. Yes, because her debt-to-income ratio is higher than 36 percent. B. No, because her debt-to-income ratio is lower than 36 percent. C. No, because her debt-to income ratio lower than 42 percent. D. Yes, because her debt-to-income ratio is 50 percent.

300+450=750 of debt 750/2000= .37 .37×100=37% a

consumption

buying of final goods and services by households

intellectual property

creations of the mind, such as inventions and literary and artistic works

Each of the following is a tax that adults pay, except _____. A. property B. income C. sales D. banking

d

This economist of the Industrial Age believed that a government should not interfere with businesses. His ideas became the basis for Capitalism. A. Wollstonecraft B. Engels C. Marx D. Smith

d

What is a migrant worker? A. a laborer with permission to work in a foreign nation B. a worker in a maquiladora C. a skilled factory worker D. a traveling agriculture worker

d

final goods and services

end products of the production process

net exports

exports minus imports

GDP per capita

GDP divided by the number of people living in a country

GDP per capita GDP divided by the number of people living in a country material goods products that are bought and sold, including food, clothes, computers, and cars standard of living comfort level that people experience from having goods and services available to them

GDP per capita GDP divided by the number of people living in a country material goods products that are bought and sold, including food, clothes, computers, and cars standard of living comfort level that people experience from having goods and services available to them

_____ is the most common way to measure the standard of living in different countries. A. GDP per capita B. Nominal GDP C. Real GDP

GDP per capita is used to measure the standard of living in a country. By comparing the GDP per capita in different countries, you can gain a better understanding of the different qualities of life around the world.

nominal GDP

Gross Domestic Product in current dollars

personal income tax

tax paid by individuals on money they earn

Exchanging baseball cards between friends is an example of _____. A. bartering B. market distribution C. producing

a

real GDP

Gross Domestic Product adjusted for price changes

_____ may be established for a religious, health, educational, civic, or social purpose. This kind of market participant does not have to pay certain taxes. A. Not-for-profit organizations B. Small firms C. Large corporations

a

Select all that apply. 3 Select the items that can determine a buyer's preference for a certain car. A. color of the car B. year the car was made C. price of the car D. buyer's phone number

abc

Select all that apply.4 Select all the items that describe the benefits that consumers may receive from more sellers in the marketplace. A. lower prices for goods and services B. better quality of goods and services C. improved customers service D. more variety of goods and service

abcd

Select all that apply. 3 Select the incentives for a person to accept a job offer. A. high wages B. good benefits C. long hours D. nearby location

abd

Select all that apply. 3 Select the items that describe a free market economy. A. distribution of goods through price B. competition among businesses C. small selection of goods and services D. efficient market system E. little freedom for producers

abd

expansionary policy

actions intended to encourage (or expand) economic growth

Bruce decided that he wanted his brother's basketball, so he took it from him. This describes the non-market distribution method of _____. A. majority rule B. force C. lottery

b

Carol works in the same company as Bob. She performs the same work, but receives a lower salary. This is an example of _____. A. price discrimination B. wage discrimination C. wage structure

b

Creating new jobs, inventing new products, and opening new stores are actions of a(n) _____. A. consumer B. entrepreneur C. homeowner

b

Entrepreneurs earn profits when consumers buy products at prices ____ their production costs. A. lower than B. that exceed

b

GDP per capita is used to measure _____, but it does NOT include _____. A. standard of living, housework B. quality of life, population C. output, government expenses

b

Peanut butter and jelly are _____. This means that an increase in the demand for peanut butter also increases the demand for jelly. A. substitutes B. complements C. services

b

Sometimes, the government and the Federal Reserve pursue conflicting goals. For example, the government may choose to carry out _____ to encourage economic growth. But the Federal Reserve may carry out _____ to reduce inflation. A. expansionary monetary policy, contractionary fiscal policy B. expansionary fiscal policy, contractionary monetary policy C. contractionary fiscal policy, expansionary fiscal policy

b

Sue was given a gift card for her birthday. When deciding how to spend it, Sue will try to _____. A. minimize benefits B. maximize satisfaction C. increase marginal costs

b

You produce T-shirts that have a marginal cost of $5. This means that at a price of $5 you will _____. A. earn profits B. cover your costs C. lose money

b

You sell T-shirts in a market _____ price controls, where you charge the equilibrium price. A. with B. without

b

_____ measures final goods and services made in the United States, while _____ measures final goods and services made with American factors of production. A. U.S. Gross National Product, U.S. Gross Domestic Product B. U.S. Gross Domestic Product, U.S. Gross National Product

b

Select all that apply. 2 Select the items that are examples of services. A. computers B. doctor visits C. concerts D. clothes

bc

Select all that apply. Select the items that describe what happens when the economy is at equilibrium. A. Supply is greater than demand. B. Consumers have enough goods. C. There are no shortages or surpluses. D. Producers use resources efficiently.

bcd

Select all that apply.3 Select the items that describe what most likely happens when the Federal Reserve increases the money supply (and people are confident in the economy). A. Interest rates rise. B. Businesses borrow more money. C. Consumption increases. D. Interest rates fall.

bcd

Select the three economic questions that each country addresses. A. What is the name of the country's president? B. Who will consume the goods and services? C. How will people vote for representatives? D. How will the goods and services be produced? E. What goods and services will be produced?

bde

Unemployment that happens when the economy is growing slowly or shrinking is called _____. This type of unemployment occurs when the economy is in the downturn phase of the economic cycle. A. structural unemployment B. seasonal unemployment C. cyclical unemployment

c

Use the table below to answer the question. Price Quantity Supplied of Shoes Quantity Demanded of Shoes $10 0 500 $50 100 300 $75 250 250 $100 400 0 The equilibrium price for shoes is _____. A. $10 B. $100 C. $75

c

Use the table below to answer the question. Price Quantity Supplied of Shoes Quantity Demanded of Shoes $10 0 500 $50 100 300 $75 250 250 $100 400 0 At a price of _____, producers are not willing to supply any shoes. This most likely happens because producers cannot cover their costs at this price. A. $100 B. $75 C. $10

c

Which of the following is a strategy that you can use to protect yourself from the risks involved in owning a home? A. Pay PMI. B. Buy a product warranty. C. Purchase homeowner's insurance. D. Take advantage of the Truth in Lending Act.

c

You charge a price of $50 for a new T-shirt. No one is willing to buy the T-shirt at this price. This is a signal for you to _____. A. make more T-shirts B. increase your costs C. lower your price

c

standard of living

comfort level that people experience from having goods and services available to them

What was the economic climate of the nation at the time the American Recovery and Reinvestment Act was proposed? A. the economy was thriving B. the economy was growing according to the annual Gross Domestic Product statistics C. the economy was steadily on the rise D. the economy was declining an on a downward turn

d

The Dust Bowl during the Great Depression was caused by poor farming practices and _____. A. lack of competition B. a prolonged drought C. government subsidies D. not enough pesticides

drought

How did the Great Depression affect protective tariffs in the United States? A. By raising exports, tariffs were beneficial to the economy. B. By raising imports, tariffs were beneficial to the economy. C. By decreasing exports, tariffs were negative to the economy. D. By decreasing imports, tariffs were negative to the economy.

Faced with economic hardships, the Smoot-Hawley Tariff, passed in 1930, raised tariffs on over 20,000 imported goods to record levels. The reaction to the Smoot-Hawley tariff by foreign countries was counter Tariffs against U.S. goods. Historically, every time a country raises tariffs, trading partners of that country counter by raising tariffs against it. The result of the tariff was disastrous. The U.S. government and its citizens failed to realize that more money was being generated by exports than by goods sold in the U.S. A total decrease of exports from $5.4 billion to $2.1 billion was devastating to the U.S. economy.

How did President Franklin Roosevelt respond to the Supreme Court declaring some of his programs as unconstitutional? A. He forced a number of them to retire prematurely. B. He ignored their rulings and kept the programs. C. He tried to pack the Court with six more justices. D. He declared the dissenting justices incompetent.

Fearing the Supreme Court might manage to completely destroy what he was trying to accomplish, Roosevelt embarked on a bold plan. He formally made a proposal to be given the authority to appoint a new Federal judge for every one who refused to retire within six months of their 70th birthday. In the process, he attempted to add six members to the high court, increasing the number of justices from nine to fifteen.

_____ studies the whole economy, such as investments made by all consumers and businesses. A. Microeconomics B. Gross Domestic Product C. Macroeconomics

The effects of everyone are part of the bigger picture. "Macro" means "large," and macroeconomics is the study of the whole economy. Macroeconomics looks at the effects of all producers—those who make and sell jeans, cell phones, restaurants, clothing, cars, computers, and every other good and service. Macroeconomics also looks at the effects of all consumers—all the people who buy goods and services in a country.

explain how to calculate Gross Domestic Product using the expenditure approach.

The expenditure approach to calculating Gross Domestic Product involves adding up the amount of money that different parts of the economy spend. These parts include individuals, businesses, and the government. So Gross Domestic Product is the sum of consumption, investments, government expenses, and net exports (exports minus imports).

The _____ is a measurement that describes price changes in commonly used goods and services, such as food and housing. A. Hyperinflation B. Consumer Price Index C. GDP per capita

The most common way to measure changes in the price level is by using the Consumer Price Index (CPI). The CPI is a measure of the average change in prices of a market basket of goods and services paid by urban, or city, consumers.

What is the total monthly payment for this mortgage? Principal Per Month $750 Interest Per Month $120 Property Tax Per Year 0.5 percent of the value of the house ($140,000) Home Insurance Per Year $460 PMI Per Month $45 $1,510 $1,011.66 $1,760 $990

Use a calculator. Remember, to find the property tax, multiply 140,000 by .005. This is the tax per year. To find how much is paid per month, divide your answer by 12 Home insurance is per year, so divide 460 by 12 so you can see what it costs per month.

When consumers buy _____ products, then producers make _____ goods and services. This can lead to economic growth. A. fewer, fewer B. more, fewer C. more, more

When people buy more goods and services, businesses earn more money and can make more investments. When businesses make more investments, they provide more jobs and opportunities to increase labor productivity. If more people are earning incomes, then more people are buying goods and services -- more consumption. More consumption leads to more production of goods and services.

Suppose the Federal Reserve increases the money supply. In at least four sentences, explain the effects of this action on interest rates, consumption, investments, and Gross Domestic Product and what would cause them to make this decision.

When the Federal Reserve increases the money supply, it also lowers interest rates. This makes more money available for borrowing, and the money becomes less expensive. So, both consumption and investments increase. This leads to increases in Gross Domestic Product, or economic growth.

A new pair of shoes costs $50. In this case, money is a _____. A. medium of exchange B. store of value C. unit of account

a

A rise in the prices of goods and services is called _____. This decreases purchasing power. A. inflation B. a tariff C. interest rates

a

At a price of $15, consumers demand 100 shirts and producers supply 50 shirts. So at this price, there is a(n) _____ . A. excess demand B. excess supply C. surplus

a

Carlos is trying to decide among a hamburger, a hot dog, or a salad. He chooses the hamburger. Any value given up by not choosing the hot dog or the salad is called the _____. A. trade-off B. opportunity cost C. marginal benefit

a

Markets exist wherever _____ and _____ exchange goods and services. A. buyers, sellers B. producers, entrepreneurs C. sellers, producers

a

Suppose the price of wheat is set at $5 a bushel and not allowed to decrease. This price is above the equilibrium price, which causes a surplus of wheat in the marketplace. This situation describes a _____. A. price floor B. price ceiling

a

The government uses its revenue to provide _____, such as roads, which other producers might not supply. A. public goods B. interest on the national debt C. taxes

a

Which policy will most likely benefit a company in the long run? A. Provide regular incentives for wage increases and train employees well. B. Buy all of the latest in technology and machinery that your company might need. C. Keep wages low and hope for no turnover. D. Train only a few of the most productive employees.

a

protective tariffs

a duty imposed on imports to raise their price.

Consumer Price Index (CPI)

a measure of the average change in prices of commonly used goods and services

labor productivity

output of goods and services divided by the number of workers used to produce the output

labor force

people 16 or older who are actively seeking work

unemployment rate

percentage of the labor force that is willing and able to work, does not currently have a job, and is actively looking for work

purchasing power

person's ability to buy goods and services, given his or her income

solvent

possessing enough cash to meet debts or expenses

Match the word with the definition: 1. Renewable Resources 2. Nonrenewable Resources 3. Producer 4. Consumer 5. Allocate 6. Choice

resources that can be replenished (such as trees) resources that are gone once they are used (such as fossil fuels) person who makes goods or provides services person whose wants are satisfied by using goods and services distribute option

Match the following: 1. Copyright 2. Patent 3. Property Rights 4. Trade Secret 5. Trademark

sole right to publish or sell a form of artistic work sole right granted to an individual who invents a good or service privileges of deciding how resources are used something that gives a producer an economic advantage over others word(s), symbol, or design that identifies a certain good or service

public good

something that can be used by everyone, provides benefits to more than one person at a time, and whose use cannot be restricted to only those people who have paid for it

To reduce inflation, the Federal Reserve _____ the money supply. This action also causes the economy to shrink. A. increases B. decreases C. does not change

the Federal Reserve uses monetary policy for different things, including helping the economy to grow and controlling inflation. You can decrease the money supply and raise interest rates. This will help keep inflation low, but it can cause an economic downturn.

sovereignty

the authority of a state to govern itself

The percentage of the labor force that is willing and able to work, does not currently have a job, and is actively looking for work is called _____. A. unemployment insurance B. cyclical unemployment C. unemployment rate

the definition of the unemployment rate: the percentage of the labor force that is willing and able to work, does not currently have a job, and is actively looking for work.

When the economy is growing, total output is _____ and total income is _____. A. decreasing, decreasing B. increasing, decreasing C. increasing, increasing

A growing economy means that producers are making more goods and services because consumers are demanding more products. When businesses invest more money, more jobs are created. More working people earn more money to buy goods and services.

Why was Franklin Roosevelt having problems with the U.S. Supreme Court during his second term in office? A. The Supreme Court was making laws countering his own. B. The Supreme Court did not believe Roosevelt was doing enough. C. The Supreme Court kept finding his policies unconstitutional. D. The Justices believed Roosevelt had become too powerful.

As Roosevelt's second term was drawing to a close, opposition to his New Deal took a turn for the worse when the U.S. Supreme Court ruled against a couple of his programs. Both the National Industrial Recovery Act and Agricultural Adjustment Act were declared unconstitutional. This set off a firestorm from the White House while igniting the passion of those who opposed the president.

_____ is when the government uses government spending and taxes to affect economic performance. A. Fiscal policy B. Monetary policy

Fiscal policy is when the government uses government spending and taxes to affect economic performance.

_____ exists because people's wants for goods and services are greater than the number of products that can be made from available resources. Bartering Money Scarcity

C.

Sue buys a new computer, which counts as _____ in the Gross Domestic Product. Later, she buys a new home, which counts as _____ in the Gross Domestic Product. A. investment, investment B. consumption, investment C. consumption, consumption

Consumption: Consumers buy durable goods, which last a long time, like cars and televisions. They also buy nondurable goods, which do not last as long, such as food and gas. Finally, consumers purchase services, such as getting a haircut or going to the movies. Investment: Investments come from two groups of people: businesses and consumers. Having bigger businesses means that companies can produce more goods, make more sales, and earn even more money. So, when a business spends money on itself, it is making an investment. These investments are part of the GDP. Investments can also come from people, such as your family, who purchase homes. People buy homes to live in, but they also hope to sell their homes in the future and earn money. So homes are actually counted as investment, not consumption.

Maria lost her job because the economy is shrinking. This is an example of _____. A. frictional unemployment B. structural unemployment C. cyclical unemployment

Cyclical Unemployment: This is unemployment that happens when the economy is growing slowly or shrinking (think: economic downturns).

Poor intellectual property laws hindered foreign countries during the Industrial Revolution by _____ A. increasing labor costs B. allowing the U.S. to increase production C. decreasing exports D. encouraging people to buy goods produced in the U.S.

During the Industrial Revolution, intellectual property laws were mostly ignored. In fact, in his "Report on Manufactures" in 1791, Alexander Hamilton urged U.S. industry to take as much as it could from the progress already made in other countries. Many early advances to industry in the U.S. were just improvements on technology brought from Great Britain, despite Great Britain's attempts to keep U.S. entrepreneurs from gaining such industry secrets.

Economic growth, peaks, economic downturns, and troughs are part of the _____. A. net exports B. economic cycle C. intermediate goods

Economies take roller coaster rides all the time. They climb up mountains, hit their peaks, fall back down, hit their troughs, and then climb back up. This ride is known as the economic cycle.

Cars made in a Japanese-owned factory located in North Carolina are counted in _____. A. only the Gross Domestic Product B. only the Gross National Product C. both the Gross Domestic Product and the Gross National Product

Gross Domestic Product, GDP, is the market value, in dollar amounts, of all final goods and services produced within a country's borders.

Suppose that the government and the Federal Reserve have conflicting goals. The government wants to encourage economic growth by _____. But the Federal Reserve wants to decrease inflation by _____. A. increasing spending, decreasing the money supply B. increasing taxes, decreasing the money supply C. decreasing spending, increasing the money supply

If the Federal Reserve decreases the money supply, it can lower prices (and inflation), but it can also cause an economic downturn. If the government increases spending, it can spur economic growth (increase GDP). But more government spending also increases the national debt.

The U.S. government pays for _____ such as roads and mail delivery. A. Social Security programs B. public goods and services C. borrowing money

If you take a look at the U.S. government's expenditures, you will see many different public goods and services. As you know, a public good or service is something that can be used by everyone, provides benefits to more than one person at a time, and whose use cannot be restricted to only those people who have paid for it.

A general rise in the prices of goods and services, such as food and clothes, is called _____. A. real GDP B. interest rates C. inflation

Inflation is an increase in the general prices of commonly used goods and services, such as food, gas, doctor's visits, and clothes. It means that the value of your money has decreased and can buy less than it did before.

Select all that apply. 3 answers Select the items that can result from more business investments. A. More jobs are created. B. Labor productivity increases. C. The economy shrinks. D. GDP increases.

Investment is part of the GDP. Entrepreneurs can use some of their profits to expand their businesses. This is a kind of investment. Entrepreneurs hope that expanding their businesses will earn them more money. Economic growth results from investments in physical and human capital, research and development, technological change, and improved institutional arrangements and incentives. These investments also create jobs and can increase labor productivity.

_____ are sources of revenue for both federal and state governments. Individuals pay this tax from the money they earn. A. Property taxes B. Sales taxes C. Personal income taxes

Personal Income Taxes: You already know that working people pay some of their income to the federal government. Some states also tax their residents' income.

In three to four sentences, mention (1) one disadvantage of using real GDP per capita as a standard of living measurement and (2) one factor that is included in an alternative measurement for the quality of life, but not found in the GDP per capita. And if this measurement is more accurate and why.

Possible disadvantages: Real GDP per capita does not reflect the distribution of wealth. It also does not show unpaid work (such as volunteer work or housework) or reflect changes in the quality of life (such as taking negative externalities into account). Possible factors included in alternative measurements for the quality of life: how long people are expected to live from birth, literacy rates, how many people attend school, value of household work, effects of pollution, child poverty, and health care coverage. Students may also mention the names of alternative measurements: Human Development Index (HDI), Genuine Progress Indicator (GPI), and Index of Social Health.

GDP per capita does NOT include _____, which is a problem with using it to measure quality of life. A. unpaid work B. country's population C. material goods

Real GDP per capita does not show the distribution of wealth, unpaid work and changes in the quality of life, such as environmental effects.

Real Gross Domestic Product (GDP) is _____ adjusted for price changes. A. nominal GDP B. inflation C. the economic cycle

Real Gross Domestic Product is the nominal Gross Domestic Product adjusted for price changes. This means that real GDP takes into account changes in price levels. nominal Gross Domestic Product is the GDP measured in current dollars.

During the Great Depression, the Agricultural Adjustment Administration paid farmers not to grow crops, and they received government_______ instead. A. subsidies B. pensions C. food

This Act limited the amount of agriculture that farmers were allowed to grow, increasing prices. It established subsidies, which paid farmers to grow less to keep prices down. The subsidies made up for the potential loss in income farmers faced by growing less.

What does the FDIC do? A. It creates a Federally controlled savings organization. B. It provides insurance against savings and loan failures. C. It provides extra money to savings and loan companies. D. It provides insurance against any banks that fail.

To make sure people no longer lost their money when banks closed, these two acts, FDIC and FSLIC, provided insurance up to $5,000 (today it is up to $100,000). These were also given oversight to monitor the banking business.

Select all that apply.2 Which of the following items demonstrate poor choices made by private property owners? A. A privately-owned chicken farm deposits the majority of chicken poop into the river that flows through the property. B. A wind farm is installed on the property of a factory warehouse to provide for cheap and efficient electricity for the workers. C. A family piles its garbage bags in the adjacent empty lot to clear their yard of any debris. D. Solar panels are installed in the parking lot of a private school to shade cars from harsh weather while providing electricity to the school. E. A family that owns a small yard raises chickens to help keep the scorpion population down, then sells the eggs at a local market.

ac

Choose all that apply. Select each of the factors you should consider when selecting a savings account. A. penalties and fees B. late fee C. minimum balance D. interest rates E. interest thresholds F. variable interest rates G. annual percentage yield (APY) H. APR

acdefg

contractionary policy

actions intended to slow economic growth

aggregate

adding things together

Select all that apply. Select all answers that describe what happens when someone purchases a "knock off" item. A. They are keeping revenue from supporting the developers of that technology. B. They are denying the country that the technology was developed in profits. C. They are sure to have a superior product. D. They have supported the creators of the technology. E. They are encouraging intellectual property theft.

ae

total output

all goods and services produced by using the factors of production

money supply

amount of money available in the economy, including money in circulation and demand deposits

trade-bloc

an agreement between countries to reduce trade barriers

At the lowest price for cell phones, consumers demand the _____ phones, and producers supply the _____ phones. A. fewest, most B. most, most C. most, fewest

c

Both an increase in _____ and an increase in _____ can contribute to economic growth by increasing the Gross Domestic Product. A. imports, population B. debt, imports C. exports, government expenses

c

If the marginal benefit of an activity is greater than the marginal cost of an activity, then you are better off _____. A. not doing the activity B. doing less of the activity C. doing more of the activity

c

Select the statement that is true about the relationship between the interest rate, the principal, the loan repayment period, and the total cost of the loan. A. The shorter the loan repayment period, the higher the total cost of the loan. B. The higher the principal the interest rate, the longer the loan repayment period. C. The longer the loan repayment period, the higher the total cost of the loan. D. The higher the interest rate, the longer the loan repayment period.

c

Shelley bought a new shirt for $25. Choose the statement that best describes this situation. A. Shelley could not afford a new shirt. B. Shelley supplied a new shirt. C. Shelley demanded a new shirt.

c

There are different ways to measure Gross Domestic Product (GDP), including adding up consumption, _____, government expenses, and net exports. A. tariffs B. imports C. investments

c

Which is the most likely scenario in which someone would take out a short-term loan with a bank? A. to buy a skateboard B. to by a second home C. to pay for credit card debt D. to buy a car

car

The majority of products that we purchase in America are produced where? A. in Michigan B. in China C. by cheap foreign labor D. in Europe

cheap foreign labor

economic growth

continual rise in a nation's production of goods and services

Select all that apply. 4 answers Select the items that describe economic growth. A. Unemployment is very high. B. Businesses make more products. C. Consumers spend more money. D. Producers earn more revenue. E. It is part of the economic cycle.

economic cycle-time from one economic peak to another economic peak; behavioral pattern in the economy that includes growing and shrinking phases. So, when an economy grows, it: makes more products spends more money earns more income In other words, economic growth means that the gross domestic product continues to increase.

The market value of final goods and services equals the total amount that is spent to buy these products. These two measurements also equal total _____. A. income earned by producers B. economic growth C. real output

income earned by producers

inflation

increase in the prices of commonly used goods and services

maquiladoras

manufacturing operations in Mexico where certain materials are duty- and tariff-free

Match the following: 1. Monopoly 2. Perfect Competition 3. Oligopoly 4. Monopolistic Competition

market structure with a single seller who produces a product with no close substitutes ("price makers") market structure with many sellers who produce identical products ("price takers") market structure with a few sellers who produce either identical or differentiated products (such as cars and steel) market structure with many sellers who produce differentiated products (such as food, hairdressers, and movie theaters)

unemployment

number of working-age people who do not have jobs

Jared quit his job at the bank and no longer has a job. He _____ collect unemployment insurance. A. can B. cannot

the government offers unemployment insurance, which is money that the government gives to an individual, who becomes unemployed. To collect these benefits, people must have lost their jobs through no fault of their own and must be actively looking for work. People who quit do NOT qualify

property right

the right to exclude others from using the good or service and the right to transfer the ownership or use the resources to others

microeconomics

the study of individual parts of the economy

macroeconomics

the study of the whole economy

scrounge

to beg or borrow things without being able to pay them back

cyclical unemployment

unemployment that happens when the economy is growing slowly or shrinking

externality

unintended consequence

fiscal policy

when the government uses government spending and taxes to affect economic performance