To Whom It May Concern (GDP),
Does GDP take into consideration the effort we put into it, such as volunteer work? NO! GDP does not take into consideration the black market or any unregistered money. We do not get paid to do volunteer work, we do it because it makes us and other people happy. I believe that GDP is a false indicator and suggest you use a different measurement such as GNP or GPI.
Sincerely,
Heather
Wednesday, January 19, 2011
Post 23: Wanted Poster
I couldn't figure out how else to upload this so I had to use the print screen button and get the entire page, sorry!
Post 22: 15 Facts Learned from Quizzes
Quiz One:
1. Anyone who is not classified as either unemployed or employed is not in the labor force.
2. When 95% of of the labor force is employed it's known as full employment.
3. Unemployed workers have jobs beneath their skill level.
4. Di scourged workers want to find jobs but have stopped looking.
5. Unemployment rate is the most closely watched and highly publicized labor force statistic.
Quiz Two:
1. Higher interest rates lead to less consumer spending.
2. A price index is used to measure the price level.
3. The price index is also used to calculate the inflation rate.
4. A supply shock in an event that increases the cost of production for all or many firms.
5. Hyperinflation is the worst form of inflation.
Quiz Three:
1. The poverty threshold is the lowest income level that a family needs to maintain a basic standard of living.
2. The poverty rate is the percentage of individuals or families living in poverty.
3. Rapid changes in technology have led to a drop in demand for lower-skilled workers.
4. Raising minimum wage is just one suggesting for improving income equality.
5. The income gap between the richest and poorest Americans was wider in the 1990's than any time since World War II.
1. Anyone who is not classified as either unemployed or employed is not in the labor force.
2. When 95% of of the labor force is employed it's known as full employment.
3. Unemployed workers have jobs beneath their skill level.
4. Di scourged workers want to find jobs but have stopped looking.
5. Unemployment rate is the most closely watched and highly publicized labor force statistic.
Quiz Two:
1. Higher interest rates lead to less consumer spending.
2. A price index is used to measure the price level.
3. The price index is also used to calculate the inflation rate.
4. A supply shock in an event that increases the cost of production for all or many firms.
5. Hyperinflation is the worst form of inflation.
Quiz Three:
1. The poverty threshold is the lowest income level that a family needs to maintain a basic standard of living.
2. The poverty rate is the percentage of individuals or families living in poverty.
3. Rapid changes in technology have led to a drop in demand for lower-skilled workers.
4. Raising minimum wage is just one suggesting for improving income equality.
5. The income gap between the richest and poorest Americans was wider in the 1990's than any time since World War II.
Post 21: Vocabulary
Page 235 Q1 Vocab:
1. National Income Accounting: tracking process providing information about a nation's economic activities
2. Gross Domestic Product: total dollar value of all final goods and services produced within a country during one calender year
3. Output-Expenditure Model: C + I + G + (X-M) = GDP
4. Personal Consumption Expenditure: consumer purchases
5. Gross Investment: total value of all capital goods produced in a given nation during one year as well as changes in the dollar value of business inventories
6. Nominal GDP: GDP expressed in the current prices of the period being measured
7. Real GDP: GDP adjusted for price changes
8: Price Index: set of statistics that allows economists to compare prices over time
9. Underground Economy: illegal activities and unreported legal activities
10. Gross National Product: NIPA used to measure U.S. economy by the Commerce Department until 1991
Page 240 Q1 Vocab:
1. Business Cycle:fluctuations in a markets system's economic activity
2. Expansion: period of economic growth
3. Peak:high point at which the economy is at it's strongest and most prosperous
4. Contraction:recession
5. Recession:decline in the real GDP for two or more consecutive quarter (six months of more)
6. Depression: prolonged and severe recessions
7. Trough:final stage of the business cycle, occurs when demand, production, and employment reach their lowest levels
8. Leading Indicators:anticipate the direction in which the economy is headed
9. Coincident Indicators:changes as the economy moves from one phase of the business cycle to another and tell the economists that an upturn or downturn in the economy has arrived
10. Lagging Indicators: change months after an upturn or downturn in the economy
Page 246 Q1 Vocab:
1. Real GDP per Capita: increase in the real dollar value of all final goods and services that are produced per person for a specific period of time
2. Labor Productivity: measure of how much each worker produces in a given period of time
3. Productivity Growth:increase in the output of each worker per hour of work
4. Capital-to-Labor Ratio:amount of capital stock available per worker
5. Capital Deepening: increase in the amount of capital goods available per worker
1. National Income Accounting: tracking process providing information about a nation's economic activities
2. Gross Domestic Product: total dollar value of all final goods and services produced within a country during one calender year
3. Output-Expenditure Model: C + I + G + (X-M) = GDP
4. Personal Consumption Expenditure: consumer purchases
5. Gross Investment: total value of all capital goods produced in a given nation during one year as well as changes in the dollar value of business inventories
6. Nominal GDP: GDP expressed in the current prices of the period being measured
7. Real GDP: GDP adjusted for price changes
8: Price Index: set of statistics that allows economists to compare prices over time
9. Underground Economy: illegal activities and unreported legal activities
10. Gross National Product: NIPA used to measure U.S. economy by the Commerce Department until 1991
Page 240 Q1 Vocab:
1. Business Cycle:fluctuations in a markets system's economic activity
2. Expansion: period of economic growth
3. Peak:high point at which the economy is at it's strongest and most prosperous
4. Contraction:recession
5. Recession:decline in the real GDP for two or more consecutive quarter (six months of more)
6. Depression: prolonged and severe recessions
7. Trough:final stage of the business cycle, occurs when demand, production, and employment reach their lowest levels
8. Leading Indicators:anticipate the direction in which the economy is headed
9. Coincident Indicators:changes as the economy moves from one phase of the business cycle to another and tell the economists that an upturn or downturn in the economy has arrived
10. Lagging Indicators: change months after an upturn or downturn in the economy
Page 246 Q1 Vocab:
1. Real GDP per Capita: increase in the real dollar value of all final goods and services that are produced per person for a specific period of time
2. Labor Productivity: measure of how much each worker produces in a given period of time
3. Productivity Growth:increase in the output of each worker per hour of work
4. Capital-to-Labor Ratio:amount of capital stock available per worker
5. Capital Deepening: increase in the amount of capital goods available per worker
Tuesday, January 11, 2011
Post 20:Quiz Corrections
Reviewing Facts: Matching
1) my answer: L (GNP), correct answer: H (National Income Accounting) because the GDP is not a tracking process, it's a total.
2) my answer: B (real GDP), correct answer: A (nominal GDP) because real GDP is adjusted for price changes and not expressed in current prices.
4) my answer: A (nominal GDP), correct answer: L (Gross National Product) because nominal GDP is the current GDP
7) my answer: F (lagging indicators), correct answer: G (coincident indicators) because lagging indicators happen after, coincident indicators tell economists that an upturn or downtown has occurred
8) my answer: G (Coincident indicators), correct answer: F (lagging indicators) because of the keyword duration, meaning current status and how long it will stay like that
Identifying Ideas: Fill in the blanks
2) my answer: business cycle, correct answer: product market personal consumption, gross investment, government purchases and net exports are not the business cycle
Understanding Ideas: Multiple Choice
3) my answer: C, correct answer: D because calculate index numbers for other years is only one step in this three step process.
4) my answer: D, correct answer: A because gathering the data is a slow and time-consuming process
8) my answer: B, correct answer: A because stock prices in a leading indicator, not lagging
Matching Part Two:
1) my answer: K (Gross Domestic Product), correct answer: D ( National Income Accounting) because GDP is not a tracking process
2) my answer: T (real GDP per capita), correct answer: B (nominal GDP) because it has to do with the current prices being measured
12) my answer: E (personal consumption expenditures), correct answer: C ( capital-to-labor ratio) because it's the amount of goods available per worker
1) my answer: L (GNP), correct answer: H (National Income Accounting) because the GDP is not a tracking process, it's a total.
2) my answer: B (real GDP), correct answer: A (nominal GDP) because real GDP is adjusted for price changes and not expressed in current prices.
4) my answer: A (nominal GDP), correct answer: L (Gross National Product) because nominal GDP is the current GDP
7) my answer: F (lagging indicators), correct answer: G (coincident indicators) because lagging indicators happen after, coincident indicators tell economists that an upturn or downtown has occurred
8) my answer: G (Coincident indicators), correct answer: F (lagging indicators) because of the keyword duration, meaning current status and how long it will stay like that
Identifying Ideas: Fill in the blanks
2) my answer: business cycle, correct answer: product market personal consumption, gross investment, government purchases and net exports are not the business cycle
Understanding Ideas: Multiple Choice
3) my answer: C, correct answer: D because calculate index numbers for other years is only one step in this three step process.
4) my answer: D, correct answer: A because gathering the data is a slow and time-consuming process
8) my answer: B, correct answer: A because stock prices in a leading indicator, not lagging
Matching Part Two:
1) my answer: K (Gross Domestic Product), correct answer: D ( National Income Accounting) because GDP is not a tracking process
2) my answer: T (real GDP per capita), correct answer: B (nominal GDP) because it has to do with the current prices being measured
12) my answer: E (personal consumption expenditures), correct answer: C ( capital-to-labor ratio) because it's the amount of goods available per worker
Monday, January 10, 2011
Post 17: Business Cycle Graphs
My trophy for best graph goes to the first graph! It was the easiest to follow but still colorful and catchy enough to graph your attention and get the message across.
<---this picture is my favorite hockey player Sidney Crosby hoisting the 2009 Stanley Cup! :)
This first graph is very descriptive and easy to follow. It combines accuracy with creativity.
This graph is not very descriptive and kind of vague but easy to follow.
This graph is very descriptive and easy to follow however it does not have the names for the phases of the four cycles.
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