Measuring Economic Activity The Business Cycle Consumer Prices & Interest Rates Investments & Borrowing Misc. $100 $200 $300 $400 $500 $600 $1000

Measuring Economic Activity $100 The more goods and services produced, the healthier an economy is considered to be. True or False? Answer

Measuring Economic Activity $200 Dividing GDP by the total population of a country results in that country’s ______________. Answer

Measuring Economic Activity $300 GDP measures a country’s economic output during ______________. Answer

Measuring Economic Activity $400 GDP does not include: A.Consumer spending for clothes B.Business spending for a new building C.Government spending to build a new library D.The value of the work you do for yourself Answer

Measuring Economic Activity $500 Chuck receives a monthly social security check from the US government. This would not be counted when measuring Chuck’s personal income. True or False? Answer

Double Jeopardy Question

Double Jeopardy Measuring Economic Activity Which of the following probably would result in a decrease in worker productivity? A.A company pays for raises for top management by laying off 60% of its employees B.An office replaces its 10-year-old computers with brand-new machines and the latest software C.A factory trains workers how to use shop equipment more efficiently D.The boss promises a bonus to all employees who come into work over the weekend to finish an important project. Answer

Measuring Economic Activity $1000 Retail sales include the sales of durable and nondurable goods bought by ________________. Answer

The Business Cycle $100 At the peak of the business cycle is _____________. Answer

The Business Cycle $200 If GDP growth slows for at least ___ quarter(s) in a calendar year, the economy is probably in a recession. Answer

The Business Cycle $300 The movement of the economy from one condition to another and back again is called a ________. Answer

The Business Cycle $400 _________ is the phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again. Answer

The Business Cycle $500 _________ is a phase marked by a prolonged period of high unemployment, weak consumer sales, and business failures. Answer

The Business Cycle $600 Business cycles are the recurring ups and downs of gross domestic product. True or False? Answer

The Business Cycle $1000 Our economy has not had a depression for more than 60 years. This period in US history is referred to as _____________________________. Answer

Consumer Prices & Interest Rates $100 During periods of deflation, prices drop so demand increases greatly. True or False? Answer

Consumer Prices & Interest Rates $200 Inflation: A.Tends to decrease wages B.Always discourages economic growth C.Increase the buying power of the dollar D.Is most harmful to people living on fixed incomes Answer

Consumer Prices & Interest Rates $300 The major influence on the level of interest rates is: A.The rate of inflation B.The supply and demand for money C.The consumer price index D.The unemployment rate Answer

Consumer Prices & Interest Rates $400 _________________ is a number that compares prices in one year with some earlier base year. Answer

Consumer Prices & Interest Rates $500 What is the main cause of inflation? Answer

Consumer Prices & Interest Rates $600 Explain how mild inflation can stimulate economic growth. Answer

Consumer Prices & Interest Rates $1000 One of the most watched measures of inflation is call the ________________________________. Answer

Investing & Borrowing $100 The money for capital projects comes from two main sources: stock investments & bonds. True or False? Answer

Investing & Borrowing $200 The money people deposit in banks and other financial institutions: A.Is an important factor in the economic growth of a country. B.Is lent to businesses to fund capital projects. C.Generally earns interest for the depositors. D.All of the above Answer

Investing & Borrowing $300 If you purchase a corporate bond, you are a(n): A.Creditor B.Stockholder C.Partner D.Entrepreneur Answer

Investing & Borrowing $400 Which of the following is an example of a capital project? A.A mid-size company restocks the supply cabinet with pencils and markers B.A large corporation gives all employees a 5% wage increase C.A small office buys several boxes of paper for the printer D.A small business purchases two new pickup trucks Answer

Investing & Borrowing $500 When a government spends less than it takes in, a budget __________ is the result. Answer

Investing & Borrowing $600 The total amount owed by the federal government is called the ________________________________. Answer

Double Jeopardy Question

Double Jeopardy Investing & Borrowing What are future economic challenges for a country’s economy? –Name 2 that were discussed in the textbook. Answer

Misc. $100 One component of gross domestic product is the value of a country’s exports plus the value of the imports into the country. True or False? Answer

Misc. $200 In the US, all people over the age of 21 who do not have a full-time, paying job are considered “unemployed.” True or False? Answer

Misc. $300 ______________ refers to the steady increase in the production of goods and services in an economic system. Answer

Misc. $400 Which of the following items would be counted when measuring GDP? A.Rolls of raw fabric B.Sheets of steel C.Tomatoes still growing on the vine D.A fully assembled washing machine Answer

Misc. $500 Which of the following is not a characteristic of a depression? A.A high demand for goods and services B.Business failures C.GDP falls rapidly D.A prolonged period of high unemployment Answer

Misc. $600 Retail sales: A.Indicate general consumer spending patterns in the economy B.Include the sales of services bought by businesses C.Usually remain stable in times of economic growth D.All of the above Answer

Misc. $1000 What is the main cause of unemployment? Answer

Measuring Economic Activity Answer - $100 TRUE! Return

Measuring Economic Activity Answer - $200 GDP per capita! Return

Measuring Economic Activity Answer - $300 1 year Return

Measuring Economic Activity Answer - $400 D – The value of work you do for yourself. Return

Measuring Economic Activity Answer - $500 False! –Personal Income = Wages, salaries, investment income, & government payments Return

Measuring Economic Activity Answer - $600 A – A company pays for raises for top management by laying off 60 percent of its employees Return

Measuring Economic Activity Answer - $1000 Consumers! Return

The Business Cycle Answer - $100 Prosperity! Return

The Business Cycle Answer - $200 2 quarters! Return

The Business Cycle Answer - $300 Business Cycle! Return

The Business Cycle Answer - $400 Recovery! Return

The Business Cycle Answer - $500 Depression! Return

The Business Cycle Answer - $600 True! Return

The Business Cycle Answer - $1000 The Great Depression! Return

Consumer Prices & Interest Rates Answer - $100 False! –It usually occurs in periods of a recession and depression. Prices of products are lower, but people have less money to buy them. Return

Consumer Prices & Interest Rates Answer - $200 D – is most harmful to people living on fixed incomes! Return

Consumer Prices & Interest Rates Answer - $300 B – the supply and demand for money! Return

Consumer Prices & Interest Rates Answer - $400 Price index! Return

Consumer Prices & Interest Rates Answer - $500 Demand for goods and services is greater than supply! Return

Consumer Prices & Interest Rates Answer - $600 During mild inflation, 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. This expands production and leads to greater employment. The newly employed workers increase spending, and therefore increase demand in the economy. Return

Consumer Prices & Interest Rates Answer - $1000 Consumer Price Index (CPI)! Return

Investing & Borrowing Answer - $100 False! –Money comes from 3 main sources: personal savings, stock investments, and bonds. Return

Investing & Borrowing Answer - $200 D – All of the above! Return

Investing & Borrowing Answer - $300 A – Creditor! Return

Double Jeopardy Investing & Borrowing Emerging markets Lack of technology, education, and business systems Increase standard of living Prevent unemployment Return

Investing & Borrowing Answer - $500 Surplus! Return

Investing & Borrowing Answer - $600 National Debt! Return

Investing & Borrowing Answer - $400 D – A small business purchases two new pickup trucks! Return

Misc. $100 False! –1 component of GDP is exports of a country LESS the imports into the country. Return

Misc. $200 False! –All people above age 16 who are actively working or seeking work Return

Misc. $300 Economic growth! Return

Misc. $400 D – a fully assembled washing machine! Return

Misc. $500 A – high demand for goods and services! Return

Misc. $600 A – Indicate general consumer spending patterns in the economy. Return

Misc. $1000 Reduced demand for the goods and services being produced by various workers Return

FINAL JEOPARDY!! Explain the difference between a recession and a depression.

FINAL JEOPARDY ANSWER Recession is a period following prosperous time in the business cycle…decreased demand, lowing of business production, rise in unemployment, GDP slows for 2 or more quarters of the year If recession deepens and spreads throughout the entire economy, a depression may occur…high unemployment, weak consumer sales, business failures, GDP falls rapidly