Econ

Economists do national income accounting by tracking. . .

production, income, consumption

How do economists create a price index?

---assign the base year an index number of 100 ---calculate index numbers for other years to show how prices have changed relative to the base year ---select a base year against which to measure changes in prices.

Which of the following could be a factor of production?

Human Resources- Capital Resources- Natural Resources

The total amount of goods and services produced throughout the economy

aggrrate supply

How does unemployment hurt the economy as a whole?

all are correct

Which of the following is illustrated by a production possibilities curve?

all combinations of two goods that can be produced

What, according to most economists, constitutes full employment?

an employment rate of 5%

Productivity growth is

an increase in the output of each worker per hour of work

Changes in economic activity that occur in a market system, measured in terms of increases or decreases in the GDP

buissnues cycle

Economic variables that tell economists that an upturn or a downturn in the economy has occured

coincident indicators

What term is used to describe a period of business slowdown?

contraction

To avoid double counting when they measure GDP, economists

count only final goods and services

most harmful unemployment

cyclical

Because resources are limited and wants are unlimited, people must

decide how to use resources effectively

Boosts the real purchasing power of the dollar

deflation

Economists measure savings to

determine strength of economy

Which term describes the phase of economic growth in the business cycle?

expansion

The exchange of property ownership and payment between two individuals or groups is known as

finical investment

Why are GDP figures sometimes inaccurate?

gathering data is a slow process

Used as the primary measure of the U.S. economy until 1991

gross national product

Microeconomics includes the study of:

individual markets

Reduces the real purchasing power of the dollar

inflation

Which of the following is true about seasonal unemployment?

it affects agriculture workers

Why is the study of unemployment part of macroeconomics?

it hurts the economy as a whole

Economic variables that help economists predict the duration of economic upturns or downturns

lagging indicators

Sample used to calculate the consumer price index

market basket

Used as a standardized basis of exchange

money

Tracks consumption, income, and production in a nations's economy

national income accounting

current GDP

nomminal GDP

The lowest income, as determined by the government, that a family needs to maintain a basic standard of living

poverty thershold

Which factors have a significant impact on productivity growth?

quantity, skill of work force, level of tech.

Which of the following is an example of a coincident indicator?

sales value- personal income- industrial production levels

People who satisfy their own needs without outside assistance are said to be

self-sufficient

Most financial institutions are protected by

state and federal deposit insurance

A stock split is generally beneficial to stockholders because. . . .

stock prices tend to rise afterwards

Which type of unemployment results when natural resources are used up?

structural employment

Which of the following is a statistical measure of income equality?

the Gini Index

a stock is "blue-chip" when

the company produces high quality products and has good long-term prospects---it has long-term stability and value---it is in high demand at any time.

The most closely watched labor force statistic

unemployment rate

Which of the following is an example of a lagging indicator?

use of consumer installment credit

When economists refer to a product's usefulness they use the term

utility

When prices rise, workers often bargain for higher wages. To cover the cost of these higher wages, producers often raise prices. What do economists call this cycle?

wage-price spiral