Term
| What is the Difference between Rational self interest and Selfishness |
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Definition
| Rational self Interest is increasing ones own rents interest or profit this also satisfys sombody else's wants, people make personal sacrifices to others |
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Term
| what are the four Phases of generalized business |
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Definition
| Peak, Recession, trough, expansion |
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Term
| what is a capital resource |
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Definition
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Term
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Definition
| Durables products such as refrigerator, computers, automobiles. |
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Term
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Definition
| services such as health, and legal services |
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Term
| what are the four types of unemployment |
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Definition
frictional, structural, cyclical,
Part time unemployment or seasonal unemployment |
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Term
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Definition
| the Skills are good but the economy is Bad, down turn in business cycle |
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Term
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Definition
| any given time some workers are "between jobs" either voluntarily quit or fired |
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Term
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Definition
| change in consumer demand (such as records, to cd, to mp3s,) and in technology alter the structure of the total demand for labor |
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Term
| GDP gross domestic product |
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Definition
| monetary measure of the total market value of all final goods and services produced with in a country in one year |
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Term
| what is Total market value |
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Definition
| what product could be sold for or is sold for |
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Term
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Definition
an increase in real GDP occurring over some time period
OR and increase in real GDP per capita occurring over some time period
a percentage of rate growth per quarter |
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Term
| What are the main sources of Growth |
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Definition
Increasing its inputs of resources
and by increasing the productivity of those inputs |
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Term
| increases in Land labor capital and entrepreneurial resources yield what |
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Definition
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Term
| growth also occurs in the increase of |
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Definition
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Term
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Definition
| all goods and services counted once the value of total produce over a year. Yearly rate calculations. Not looking at what was sold but what was produced |
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Term
| what is not counted in GDP |
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Definition
| Transfers,second hand sales, labor not paid for such as parenting,or barter system, |
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Term
| What we are trying to get close with GDP |
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Definition
| how wealthy we are as a nation. |
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Term
Income generates
expenditure generates |
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Definition
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Term
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Definition
| consumption + Investment + Government Purchases of Goods + (x-m) the net exports, exports minus imports (GDP= C+I+G+(x-m) |
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Term
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Definition
| goods that Last 3 years or longer, |
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Term
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Definition
| such as food, and services |
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Term
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Definition
| the creation of capital goods |
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Term
| Government purchases of goods includes |
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Definition
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Term
| exports create income where |
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Definition
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Term
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Definition
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Term
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Definition
| GDP that has been inflated or deflated to reflect changes, market value current prices |
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Term
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Definition
| corrected for price changes |
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Term
| The current market basket base year is |
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Definition
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Term
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Definition
| business activity has reached a temporary maximum |
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Term
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Definition
| a period in decline in total output. downturn in 6 months (two quarters) |
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Term
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Definition
| output of employment "bottom out" |
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Term
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Definition
| a period in which real GDP, income, and employment rise |
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Term
| effects of durables on the business cycle |
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Definition
| During a recssion business will decrease the amount of durables they purchase. Often they will fix their old equipment and hope it holds together |
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Term
| Non-durables effect on the business cycle |
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Definition
| non-durables are somewhat unaffected by recession due to the necessity, such as health care, and legal service |
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Term
| what are the four layers of the Labor force |
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Definition
| Under 16 or institutionalized, not in labor force, Employed, and unemployed, |
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Term
| formula for measuring unemployment |
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Definition
| unemployed divided by labor force (employed) multiplied by 100 |
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Term
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Definition
| unpaid labor,how happy someone is, volunteer work, home improvements, more leisure, does not make allowances in product quality, Illegal activities, underground Economy |
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Term
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Definition
The difference between actual and potential GDP.
actual GDP - Potential GDP |
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Term
| what is the economic cost of unemployment |
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Definition
| lost output in economy, potential production of goods and services are irretrievably lost |
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Term
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Definition
| every 1 percentage point by which actual unemployment rate exceeds the natural rate, a negetive GDP gap of about 2% occurs |
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Term
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Definition
| multiply exceeding natural rate of unemployment by 2 |
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Term
| natural rate of unemployment |
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Definition
| unemployment is only structural, and frictional (no cyclical) |
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Term
| problems that arise from Business cycle |
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Definition
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Term
| what are some problems with how we measure unemployment |
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Definition
| The number of discouraged workers or those who dont believe that they are able to get a job |
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Term
| why did the NRU decline since the 1980s |
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Definition
growing proportion of younger workers
growth of temp help agency
work requirements under welfare laws
the doubling of US prison population |
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