ECON 104 FINAL terms (exam 1)
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22 terms
Terms | Definitions |
|---|---|
 Command System | government ownership, decisions made by a central planning board. |
| Market system | private ownership of resources, decisions based on market. |
| Gross Domestic Product | GDP stands for |
| Gross Domestic Product | total market value of final goods and services produced in a given period of time. |
| Retained Earnings | When corporate retains profit to use in future. |
| Personal disposable income (PDI) | after-tax income |
| Nominal GDP | current prices; no adjustment for inflation |
| Real GDP | GDP in constant prices, or price at base year |
| Recession | Real GDP decreases from one year to the next. |
| financial shock, political event/world event, or reduction in spending | Causes of recession |
| inflation | increase in greneral (average) level of prices |
| demand-pull inflation and cost-push inflation | the 2 causes of inflation |
| Demand-pull inflation | type of inflation where there is too much spending chasing too few good. happens if economy is strong. |
| cost-push inflation | type of inflation where the cost of production goes up and pushes all other prices up. |
| those over the age of 65 and under the age of 16, those in the military, those in jail, full time students, and home-makers. | labor force excludes... |
| frictional, structural, and cyclical | the 3 types of unemployment are... |
| frictional unemployment | voluntarily unemployeed, or inbetween jobs. |
| structural unemployment | not voluntary unemployment. Do not have skills necessary for unemployment. Lorg-term. |
| Cyclical unemployment | unemployed because the economy is weak. |
| an economic system | a set of arrangements and a coordinating mechanism. |
| the natural rate of unemployment | the rate of unemployment occurring when the economy is in short-run potential. |
| Real GDP | find the strength or weakness of an economy by looking at... |
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