Econ 202 Flashcards: GDP Concepts
21 Questions
100 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is GDP?

the value of all final goods and services produced domestically

What does the demand measure of GDP accounting add together?

consumption, investment, government purchases, and trade balance

What are examples of durable goods?

cars and furniture

What are inventories?

<p>goods produced but not yet sold and are sitting in warehouses</p> Signup and view all the answers

In order to avoid double counting, statisticians just count the __________________.

<p>final goods and services</p> Signup and view all the answers

What is now the largest single component of the supply side of GDP?

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

In which countries does the command economy predominates?

<p>Cuba and North Korea</p> Signup and view all the answers

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

<p>market-oriented economy</p> Signup and view all the answers

What is meant by the underground economy?

<p>markets where buyers and sellers make transactions without the government's approval</p> Signup and view all the answers

What is division of labor?

<p>the way in which the work required to produce a good or service is divided into tasks performed by different workers</p> Signup and view all the answers

If macroeconomics looks at the economy as a whole, what specific aspect does it focus on?

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

In the ____________, households work and receive payment from firms.

<p>labor market</p> Signup and view all the answers

In the ______________, households receive goods and services and pay firms for them.

<p>goods and services market</p> Signup and view all the answers

What describes a monetary policy tool?

<p>interest rates</p> Signup and view all the answers

What is the connection from inputs to outputs for the entire economy called in macroeconomics?

<p>an aggregate production function</p> Signup and view all the answers

The value of what is produced per worker, or per hour worked, is called ____________.

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

When society has a higher level of capital per person, it is called ______________.

<p>capital deepening</p> Signup and view all the answers

During the Great Depression, the unemployment rate reached what percent?

<p>25</p> Signup and view all the answers

What is frictional unemployment?

<p>unemployment due to normal turnover in the labor market</p> Signup and view all the answers

What type of unemployment occurs because of a recession?

<p>cyclical unemployment</p> Signup and view all the answers

What is efficiency wage theory?

<p>a theory stating that wages positively influence worker productivity</p> Signup and view all the answers

Study Notes

GDP and Economic Indicators

  • GDP represents the total value of all final goods and services produced within a country.
  • Demand measure GDP accounting combines consumption, investment, government purchases, and trade balance for economic analysis.
  • Durable goods are items such as cars and furniture that have a long lifespan and provide prolonged utility.

Inventory and Economic Measurements

  • Inventories consist of goods that are produced but not yet sold, stored in warehouses for future sales.
  • To avoid double counting, only final goods and services are included in GDP calculations.

Components of GDP

  • Services have become the largest component of GDP's supply side, accounting for over half of its total value.

Economic Systems

  • Command economies, where economic decisions are centrally controlled, are predominant in countries like Cuba and North Korea.
  • A market-oriented economy features decisions made by buyers and sellers regarding production and consumption.

Labor and Market Functions

  • The underground economy consists of markets where transactions occur without government oversight.
  • Division of labor involves splitting production tasks among various workers to improve efficiency.
  • Households engage in the labor market, providing work to firms in exchange for payment.

Monetary Policy and Productivity

  • Interest rates are a crucial tool in monetary policy, influencing economic activity and consumer spending.
  • An aggregate production function describes the relationship between inputs and outputs for the entirety of the economy.
  • Productivity quantifies the output generated per worker or per hour worked, impacting economic growth.

Capital and Employment

  • Capital deepening occurs when society increases the capital available per person, fostering higher productivity.
  • The Great Depression saw unemployment peak at 25%, signifying a severe economic downturn.
  • Frictional unemployment arises from routine labor market transitions, while cyclical unemployment is linked directly to economic recessions.
  • Efficiency wage theory suggests that higher wages can lead to improved worker productivity, enhancing overall economic performance.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Description

Test your knowledge on key GDP concepts through these flashcards from Econ 202. Each card provides important definitions and examples relevant to the study of national income accounting. Perfect for exam preparation and quick revision.

More Like This

Use Quizgecko on...
Browser
Browser