Chapter 12 and 13 Economics

First part of Jeopardy deals with Chapter 12 and GDP

What does GDP stand for:

Gross Domestic Product

What does GDP measure:

It measures all income a country makes within its borders within a calendar year

How do you calculate GDP (What is the formula):

C+I+G+ (X-M) = GDP

What is the “C” in the formula of GDP and what does it measure:

It’s the Personal Consumption which measures consumers purchases of products and services in a nation in a year’s time

What is the difference between ‘Durable’ goods and ‘Non-Durable’ goods:

Durable Goods—are purchases which last a while (computer or refrigerator) while…. Non-Durable—are purchases that do not last a long time (food or cosmetics)

What is the “I” in the formula of GDP and what does it measure:

It’s the Gross Investment which is the total value of all capital goods purchased in a nation in a year.

What is the “G” in the formula of GDP and what does it measure:

Government purchases from federal, state and local governments spent on goods and services in a year (like highways or military spending)

What is the “(X-M)” in the formula of GDP and what does it measure:

X= Exports products going out of the country and M = Imports products going into the country

This measures current GDP (looking for a term):

Nominal GDP

What is the final stage in the business cycle where it reaches the lowest point:

Trough

This was used as the world’s measurement of growth or decline until 1991 (before GDP):

Gross National Product

True or False To avoid double counting when measuring the Gross Domestic Product, economists count only final goods and services:

True

When the business cycle is rising or growing, it is in what type of a ‘phase’:

Expansion Phase

What is the term when a period of the business cycle in slowing down and going downward: A) Peak B) Trough C) Contraction D) Expansion

C. Contraction

True or False To anticipate which direction the economy is headed, economists examine leading indicators:

True

A prolonged and severe recession is known as:

Depression

True or False The business cycle typically fluctuates in a market system:

True

True or False During a peak phase in the business cycle, low consumer demand encourages producers to more fully utilize plant capacity and to hire workers

False During a peak phase in the business cycle, HIGH consumer demand encourages producers to more fully utilize plant capacity and to hire workers

True or False Economists use the output- expenditures model to compute GDP:

True

Changes in economic activity that occur in the market system, measure in terms of increases or decreases in the GDP: A) Nominal GDP B) Real GDP C) Portfolio D) Business Cycle

D. Business Cycle

The construction of a new shopping mall is an example of an item that would be included in which of the following four sectors that make up GDP? A. Government purchases of goods and services B. Personal consumption expenditures C. Net exports of goods and services D. Gross private domestic investment

D. Gross private domestic investment

Increased leisure time is NOT reflected in GDP because: A. GDP does not measure the underground economy B. GDP does not measure non-market activities C. It is one of the “goods” not reported in GDP D. It is one of the “bads” not reported in GDP

C. It is one of the “goods” not reported in GDP

This is an example of what component of GDP—a machine used to clean a business: (Is it: C, I, or G)

I- w/ Capital Investment

This chart represents what:

Business Cycle

Second part of Jeopardy deals with Chapter 13 and Unemployment and Inflation and Poverty Threshold

This reduces the real purchasing power of the dollar:

Inflation

This is a type of unemployment is where it is most harmful to an economy:

Cyclical Unemployment

This is the most watched labor forced statistic in the United States:

Unemployment Rate

This is a type of unemployment where workers don’t work because of weather patterns during a calendar year:

Seasonal Unemployment

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

Poverty Threshold

This is a type of unemployment where you need to keep up with technology:

Structural Unemployment

This is a type of unemployment where people shift from job to job:

Frictional Unemployment

Sample used to calculate the consumer price index is called _________ __________.

market basket

This boosts the real purchasing power of the dollar: A) inflation B) deflation C) hyperinflation D) inflation rate

B) Deflation

Economists considered the unemployment rate of about 5 percent to represent ____ _________.

Full Employment

What is the name of the agency which conducts monthly current population surveys around the country? A) The Labor Department B) The Bureau of Labor Statistics C) The Commerce Department D) The Census Bureau

D. The Census Bureau

True or False A person who wants a job but has stopped looking for work related reasons is called Marginally Attached worker.

False---This is called a Discouraged worker

What is it called when a worker has a job ‘beneath’ their skill level:

Underemployed

When inflation is at its worst degree which could lead to an economic collapse, this is called:

Hyperinflation

What are the four types of unemployment? (for ONE point)

1. Frictional 2. Structural 3. Seasonal 4. Cyclical

Name the FIVE Steps that lead inflation to get out of hand. (for two points)

1. Businesses and consumers increase their spending on products/service 2. Demand out paces supply (people/businesses want too much ASAP) 3. Businesses are forced to raise their prices for products/services 4. Demand continues to rise 5. Prices continue to rise

So what are the THREE steps which helps reduce inflation? (for two points)

6. Consumers decide to reduce their purchases 7. This makes more products/services more available 8. Businesses then are forced to cut prices

The study of unemployment is part of macroeconomics because: A) It threatens the security of American families B) Unemployed people may lose their homes C) Unemployment hurts the economy as a whole D) Unemployed people can’t afford goods and services

C. Unemployment hurts the economy as a whole

Which government agency analyzes and publishes the information contained in Current Population Survey: A) Bureau of Labor Statistics B) Commerce Department C) Labor Department D) Census Bureau

A. Bureau of Labor Statistics

An example of an underemployed person is: A) An unemployed doctor working as a clerk B) A unemployed teacher teaching summer school C) An unemployed engineer who has stopped looking for work D) All of the above

A. An unemployed doctor working as a clerk

When an industry declines or disappears, _______ unemployment results.

Structural

Using up resources can cause ________ unemployment.

Structural

True or False An event that increases the cost of production for all or many firms, resulting in overall higher prices is called supply shock.

True

Last Question: Income which does not increase evenly when prices goes up is called _______ __________.

Fixed Income

Last Question: The process by which rising wages cause higher prices, and higher prices causes higher wages is called _____-_______ ________.

Wage-Price Spiral