Chapter 3 IFIC: Economic Indicators and Their Impact on Investments

Chapter 3 IFIC: Economic Indicators and
Their Impact on Investments

Who are the 3 main decision makers in an economy? - correct answer ✔✔P&G. Fast Co.
Respublika ng Filipinas



1. Consumers

2. Companies

3. Governments

-consumers maximize well being, firms profits, governments public good.



The forces of demand and supply leads to ______. this is the price at which we buy and sell
goods and services - correct answer ✔✔Market Equilibrium



________ is the market value of all finished goods and services produced WITHIN a country in a
GIVEN TIME PERIOD, usually a quarter or year. - correct answer ✔✔GDP



What are the 2 ways of measuring GDP?

1. _________ : sum of personal consumption, investment, government spending, (X-M)

2. _________ : total income earned producing those goods and services - correct answer ✔✔1.
Expenditure Approach



2. Income Approach



What are the 5 phases of the business cycle?

1.

, 2.

3.

4.

5. - correct answer ✔✔REP-CT

1. recovery

2. expansion

3. peak

4. contraction

5. trough



What represents the share of the working-age population that is in the labour force? - correct
answer ✔✔Participation Rate



What are the 3 kinds of unemployment?

1. normal turnover

2. workers are unable to find work, do not have skills

3. normal fluctuation in biz cycle - correct answer ✔✔1. Frictional

2. Structural

3. Cyclical



Is it scope of Micro or Macro?

1. How do min wage laws affect supply of labor

2. Why did total output shrink last year

3. How can a nation improve standard of living

4. How would a tax affect consumers - correct answer ✔✔1. MICRO

2. MACRO