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

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

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

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

6. 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

7. 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

8. Double Jeopardy Question

9. 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

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

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

12. 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

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

14. 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

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

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

17. 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

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

19. 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

20. 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

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

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

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

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

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

26. 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

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

28. 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

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

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

31. Double Jeopardy Question

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

33. 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

34. 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

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

36. 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

37. 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

38. 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

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

40. Measuring Economic Activity Answer - $100 TRUE! Return

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

42. Measuring Economic Activity Answer - $300 1 year Return

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

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

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

46. Measuring Economic Activity Answer - $1000 Consumers! Return

47. The Business Cycle Answer - $100 Prosperity! Return

48. The Business Cycle Answer - $200 2 quarters! Return

49. The Business Cycle Answer - $300 Business Cycle! Return

50. The Business Cycle Answer - $400 Recovery! Return

51. The Business Cycle Answer - $500 Depression! Return

52. The Business Cycle Answer - $600 True! Return

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

54. 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

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

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

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

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

59. 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

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

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

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

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

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

65. Investing & Borrowing Answer - $500 Surplus! Return

66. Investing & Borrowing Answer - $600 National Debt! Return

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

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

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

70. Misc. $300 Economic growth! Return

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

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

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

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

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

76. 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