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39 Cards in this Set
- Front
- Back
National income can be defined as the _____ of producing the GDP. |
total factor cost |
|
The GDP excludes |
the production of many items for which no monetary transaction takes place.
(mom at home) |
|
The national income equals |
GDP minus capital consumption allowances minus indirect business taxes |
|
What dollar GDP is more appropriate for measuring changes in total output? |
constant dollar GDP |
|
The real or constant dollar per capita disposable income takes into account changes in |
both the price level and the size of the population |
|
Current forecasts of the GDP for future decades rely heavily on |
the population forecasts
*affecting labor-force |
|
The GDP is |
the current market value of final goods and services produced by the nation's economy over a period of time (one calendar year) |
|
National income is equivalent to total earnings in the form of |
wages, rent, interest, and profits |
|
Transfer payments are added to national income in the process of |
determining personal income |
|
Personal consumption expenditures |
account for the largest component of spending in the US |
|
National income accountants eliminate double counting of intermediate goods by |
using only the value of final goods |
|
A transfer payment is |
a payment of money in return for which no current goods or services are produced. |
|
The value of leisure is not taken into consideration in |
GDP accounting |
|
Constant dollar figures |
are more accurate than current dollar figures when using the GDP as a measure of the increases in our level of living |
|
Consumer purchases of goods and services |
is the largest category of spending in the calculation of the GDP |
|
Intermediate products |
are not included in the value of GDP |
|
Transfer payments are included in personal income because |
no current goods or services are produced |
|
Income taxes |
constitute the main difference between personal income and disposable personal income |
|
The US unemployment rate excludes |
unemployed workers who are not actively seeking work |
|
A sizable part of increases in the US labor force in the past few decades has been due to |
the influx of women |
|
Service-oriented jobs make up more than ______ of total employment in the US labor force. |
three-quarters |
|
The number and the percentage of US workers in labor unions have _____ in the past decade. |
decreased |
|
The total labor force |
includes all persons in the non institutional population who are either working or seeking work. |
|
Maximum employment was ___ defined in the Employment Act of 1946. |
not |
|
The Employment Act of 1946 makes the government responsible for |
maintaining maximum employment, production, and purchasing power. |
|
Structural unemployment is caused primarily by |
automation |
|
US workers tend to be |
geographically immobile |
|
Many economists believe that increases in the minimum wage tend to create a |
labor surplus |
|
A speeding up in the replacement of capital and durable consumer goods |
during a depression tends to start a recovery |
|
Members of the armed services are counted as a portion of the |
total labor force |
|
Increasing mechanization is causing a continually ____ demand for unskilled labor |
lower |
|
The measurement of a business cycle is obtained by adjusting the real GDP for |
seasonal variation, the trend, and random fluctuations |
|
Cost changes generally ____ behind price changes during the business cycle. |
lag |
|
A recession occurs whenever theres a |
decline in real GDP for two or ore successive quarters |
|
Involuntary inventory accumulation |
may occur during the contracting phase of the business cycle |
|
Inventory depletion in depression can lead to |
increased production in recovery |
|
The innovation theory is classified among |
the real or physical causes of the business cycle |
|
Profits and profit margins tend to ____ during the late recovery and early prosperity stages of the business cycle |
increase |
|
When the real GDP increases, unemployment usually |
decreases |