Applied Economics Overview

True (A)

Progressive taxation

<p>raise</p> Signup and view all the answers

<p>Unemployment = Raise interest rates Inflation = Provide more investment opportunities Income inequality = Implement progressive taxation Rural-urban migration = Improve rural economic opportunities</p> Signup and view all the answers

<p>Government subsidies for all citizens (D)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Optimizing production costs</p> Signup and view all the answers

<p>Decrease in the cost of living (C)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>The two main approaches are the expenditure approach and the income approach.</p> Signup and view all the answers

<p>household and individual consumption</p> Signup and view all the answers

<p>Poverty = The state or condition in which people lack the financial resources for a minimum standard of living Unemployment = The proportion of people available and seeking paid work but unable to find it Inflation = A general increase in prices of goods and services over a period of time Income Inequality = The uneven distribution of income among individuals or households in a society</p> Signup and view all the answers

<p>Increase taxes on the wealthy (A)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>The number of people entering the job market has been greater than the number of jobs being created.</p> Signup and view all the answers

<p>How to maximize profit for businesses? (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>command</p> Signup and view all the answers

<p>Positive economics focuses on describing economic facts and observations, while normative economics suggests policy recommendations based on values and goals.</p> Signup and view all the answers

<p>GDP = Total market value of all finished goods and services produced within a country in a given period GNP = Total market value of goods and services produced by a country's residents, regardless of location Inflation = A general increase in the price level of goods and services over time Unemployment = The percentage of the labor force that is actively seeking employment but unable to find it</p> Signup and view all the answers

<p>Resource allocation (D)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Positive economics would examine the data on inflation rates before and after the policy implementation, looking for any correlations or changes in the inflation rate. It would analyze the policy's impact based on objective data and observations.</p> Signup and view all the answers

What to produce, how to produce, and for whom to produce.

Processes societies use to address basic economic concerns.

An economy where decisions are based on customs and traditions.

An economic system where the government makes all decisions.

An economy driven by individual and business decisions based on supply and demand.

Focuses on factual analysis of the economy's current state.

Focuses on what the economy should aim for or improve through policies.

Total market value of finished products produced within a country in a period.

Strategies aimed at enhancing job creation especially in labor-intensive sectors.

The movement of people from rural areas to cities, often seeking better opportunities.

A situation where the skills of workers do not match the demands of available jobs.

A decrease in the purchasing power of money, leading to a general increase in prices.

Factors contributing to the uneven distribution of income, such as political culture and taxation.

A tax system where higher income earners pay a larger percentage of their income in taxes.

The lowest wage that employers may legally pay their workers.

Chances for individuals and entities to invest in businesses, stimulating economic growth.

A method to calculate GNP via consumer, investment, government, and net exports spending.

Calculating GNP by summing up income generated by production processes.

GNP = C + I + G + (X - M), where each letter represents a component of total expenditure.

A condition where individuals or communities lack the financial resources for a minimum living standard.

Factors such as high population growth, rising living costs, unemployment, and income inequality.

Measures including reducing unemployment, improving labor policies, and enhancing social services.

The percentage of people available for work but not currently employed.

Issues like job market saturation and rural-urban migration outpacing job creation.