Flashcard on GDP and Unemployment

Front

What does GDP measure?

Back

The total market value of all final goods and services produced within a country's borders in a given time period.

Front

Which of the following is NOT included in the calculation of GDP? Consumer spending, Government spending, Investments, Transfer payments

Back

Transfer payments

Front

Why are intermediate goods excluded from GDP calculations?

Back

To avoid double counting

Front

Which of the following would be considered part of the underground economy? A teenager mowing lawns for cash, A restaurant selling meals, A factory producing cars, A bank providing loans

Back

A teenager mowing lawns for cash

Front

What is the definition of an unemployed person in economic terms?

Back

Adults not working but actively seeking work

Front

What is considered the natural rate of unemployment for full employment?

Back

5-6%

Front

How is the cost of living defined?

Back

The price of essential goods and services

Front

What is inflation?

Back

A general and sustained increase in prices

Front

What is considered a "healthy" rate of inflation?

Back

2-3%

Front

Which of the following is NOT excluded from GDP calculations? Second-hand sales, Non-market transactions, Exports, Underground economy activities

Back

Exports