Global Econ Chapter 2 test reveiw

Which best describes and economic recession?
Click the card to flip 👆
1 / 46
Terms in this set (46)
Which best describes and economic recession?
High production (GDP) and stable prices
Which term refers to the total number of goods domestically produced and sold in 1 year?
GDP
Which term best describes an increase in prices?
Inflation
What measurement is used to determine if inflation has occurred?
CPI
How does inflation affect the value of money?
Depreciates
How would an economic recession affect normal consumer activity?
Limit consumer spending
All of the following factors influence a country's economic development except:

a. Literacy Level
b. Dependence on agriculture
c. Technology
d. Capital
d. capital
Dependence on agriculture and mining is a characteristic of which type of country?
A. Cyclical
B. Seasonal
C. Structural
D. Frictional
A. Cyclical
New technology perfectly replicates hand blown glass works of art.
Cyclical
Seasonal
Structural
Frictional
Structural
This type of unemployment is the only one that is voluntary.
Cyclical
Seasonal
Structural
Frictional
Seasonal
Brazil defaults on its 2 trillion dollar loan from BanksRUs forcing BanksRUs to shut it's doors Cyclical Seasonal Structural FrictionalCyclicalNew technology perfectly replicates hand blown glass works of art. Cyclical Seasonal Structural FrictionalStructuralThis type of unemployment is the only one that is voluntary. Cyclical Seasonal Structural FrictionalFrictionalWinter hits early, pools, rivers & lake sports force to shut down early. Cyclical Seasonal Structural FrictionalSeasonalDelta, United, & Frontier announced a reduced number of flights due to the recent recession. Cyclical Seasonal Structural FrictionalCyclicalWhen someone is better at producing something than others they have a(n) __________ advantage. comparative absolute opportunistic productiveabsoluteWhen a person can perform an activity at a lower opportunity cost than others they have: comparative absolute opportunistic productivecomparativemeasures the total value of all goods and services produced by the resources of a country GDP GNP CPI Stock MarketGNPexports > importstrade surplusIf you have an UNFAVORABLE trade balance you have a trade surplus trade deficit trade balance none of thesetrade deficitPer capita refers to an amount per person. TRUE FALSETRUEinflation would depreciate the value of money. TRUE FALSETRUEWhich best describes unemployment? a. Those who are able to work, but not working. b. The number of people not working. c. Workers who choose not to work. d. College students without jobs.a. Those who are able to work, but not working.Which Best describes an economic recession? a. Unemployment increases and prices increase b. Unemployment decreases and prices increase c. Unemployment increases and prices decrease d. Unemployment decreases and prices decreasec. Unemployment increases and prices decreaseWhat measurement is used to determine if inflation has occurred? a. GNP b. Dow Jones c. CPI d. GDPa. GNPexports > importsfavorableHow would an economic recession affect normal consumer activity? a Raise consumer spending b Limit consumer spending c More investment in stocks d Withdraw all savingsb Limit consumer spendingWhen GDP declines for 6 consecutive months, our economy is experiencing a _______. a. peak b. expansion c. recession d. troughc. recessionrefers to a nation's transportation, communication, and utility systemsinfrastructurewhen a country specializes in the production of a good or service at which it is relatively more efficientcomparative advantageevolving from less developed to industrializeddeveloping countries"who is better at producing" exists when a country can produce a good or service at a lower cost than other countriesabsolute advantagemeasures the output of goods that a country produces within its bordersgross domestic producta country with little economic wealth and an emphasis on agriculture or miningless developed countriesthe difference between a country's exports and importsbalance of tradea country with strong business activity that is usually the result of advanced technology and a highly educated populationindustrialized countryhighest point between the end of an economic expansion and the start of a contraction in a business cyclepeakThe percentage of the total labor force that is unemployed but actively seeking employment and willing to work.unemployment ratemeasures the total value of all goods and services produced by the resources of a countryGross domestic productunemployment that occurs because of people moving or changing occupationsfrictional Unemploymentsignificant decline in activity across the economy, lasting longer than a few monthsrescissionstage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansiontroughworkers losing their jobs due to business cycle fluctuations in outputcyclical unemploymentfluctuations in economic activity that an economy experiences over a period of timebusiness cyclea period when business activity surges and gross domestic product expands until it reaches a peakunemployment rateunemployment arising from technical change such as automation, or from changes in the composition of output due to variations in the types of products people demandstructural unemployment