1. Economic Indicators, Unemployment, Poverty, & Inflation

2. What is the difference between real and nominal GDP? Nominal GDP is measured in the year in which the GDP was calculated. Real GDP adjusts for changes in prices from year to year.

3. What are examples of nonmarket activities?

4. How have you participated in the underground economy in your life?

5. Explain how the following could lead to economic growth. Opening a protected wilderness area to coal mining. increase natural resources Increasing scholarship funding for low-income students. improve human resources

6. More Economic Growth Providing tax breaks for companies purchasing new equipment. increase capital resources Strengthening laws to protect the rights of investors. incentive for creating new technology

7. What does it take to be unemployed? At least 16 years old. Able to work. Have actively looked for work in the last four weeks. What potential problems do you see with the way that unemployment is calculated?

8. Describe the difference between underemployed and unemployed.

9. Does full employment mean that everyone has a job?

10. Unemployment Types: Because of reduced demand, an appliance company temporarily closes one of its factories and lays off workers. cyclical

11. In September, a part-time student at the University of Central Florida in Orlando loses his job at a theme park. seasonal

12. A local travel agency has to close down because of the widespread availability of direct online booking options. structural

13. A newspaper journalist leaves her job to make a switch into television journalism. She has been looking for a new job for several months. frictional

14. What are some examples of welfare programs? Food stamps Medicaid Social Security Earned-income tax credit Unemployment insurance

15. What’s the difference between the poverty threshold and the poverty rate? What’s another common term for poverty threshold?

16. What does a Lorenz Curve show? Look at page 391 in your textbook.

17. Explain the Consumer Price Index (CPI) Measure of changes in the prices of goods and services commonly purchased by consumers. How is the producer price index (PPI) different than the consumer?

18. Describe two causes of inflation. Demand-pull inflation Cost-push inflation

19. Who is most likely to be negatively impacted by inflation and why?