Understanding GDP

Front

What is GDP?

Back

The total value in dollars of all the final goods and services produced by a country during a single year.

Front

What are Capital Goods?

Back

They are unique in that they are produced and cannot be found in nature

Front

What is the Factor Market

Back

Markets where productive resources are bought and sold.

Front

1. What is Depreciation?

Back

The loss of value due to wear and tear to durable goods.

Front

1. What are the sectors that make up the Circular Flow of Economic Activity?

Back

Consumer, business, government, and foreign.

Front

1. What are Productive Markets?

Back

Markets where producers offer goods and services for sale.

Front

1. What is Specialization?

Back

Takes place when people, businesses, regions, or countries concentrate on goods or services they produce better than anyone else.

Front

1. What are Intermediate Goods, how are they factored toward GDP, and give an example?

Back

Those that go into making the final good (flour, yeast water). They are not counted in GDP. Sale of used goods is also not counted in GDP.

Front

1. Define Recession

Back

When the GDP has declined for two or more consecutive quarters.

Front

1. What is a Bear Market?

Back

Occurs when there's been a continuous fall in stocks (usually at least 20%)