ECON100 Final Exam – Questions With Expert
Solutions
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Practice questions for this set
Learn 1/7 Study with Learn
A currency whose exchange rate is determined by demand for and supply of the
currency in the foreign exchange market
Choose an answer
1 Floating currency 2 Microeconomics
3 Value added 4 Business cycle
Don't know?
Terms in this set (141)
,Microeconomics The study of how households and firms make choices,
how they interact in markets and how the government
attempts to influence their choices
Macroeconomics The study of the economy as a whole including topics
such as inflation, unemployment and economic growth
Economic growth The expansion of society's productive potential, usually
measured by the rate of growth in real GDP
Unemployment rate The percentage of the labour force that is unemployed
Business cycle Alternating periods of economic expansion and
economic contraction relative to the trend rate of
economic growth
Expansion The period of a business cycle during which total
production and total employment are increasing above
the trend growth
Contraction The period of a business cycle during which total
production and total employment are falling below the
trend growth
Recession The period of a business cycle during which total
production and total employment are decreasing
Inflation rate The percentage increase in the general price level in the
economy from one year to the next
, Gross Domestic Product (GDP) The market value of all final goods and services
produced in a country during a period of time
Final good or service A new good or service which is the end product of the
production process that is purchased by the final user
Intermediate good or service A good or service that is an input into another good or
service
Value added The market value a firm adds to a product
Measuring GDP 1. Production method
2. Expenditure method
3. Income method
Circular-flow diagram
Transfer payments Payments by the government to individuals for which the
government does not receive a good or service in
return
Components of GDP Y = C + I +G + (X-M)
Consumption (C) Spending by households on goods and services, not
including spending on new houses
Investment (I) Spending by firms on new factories, office buildings,
machinery and inventories, plus spending by
households on new houses
Government purchases Spending by federal state and local government on
goods and services
Net exports (X-M) The expenditure on exports minus the expenditure on
imports
Solutions
Add to calendar
Play your way to mastery with fun games
Match Blocks Charms NEW
Practice questions for this set
Learn 1/7 Study with Learn
A currency whose exchange rate is determined by demand for and supply of the
currency in the foreign exchange market
Choose an answer
1 Floating currency 2 Microeconomics
3 Value added 4 Business cycle
Don't know?
Terms in this set (141)
,Microeconomics The study of how households and firms make choices,
how they interact in markets and how the government
attempts to influence their choices
Macroeconomics The study of the economy as a whole including topics
such as inflation, unemployment and economic growth
Economic growth The expansion of society's productive potential, usually
measured by the rate of growth in real GDP
Unemployment rate The percentage of the labour force that is unemployed
Business cycle Alternating periods of economic expansion and
economic contraction relative to the trend rate of
economic growth
Expansion The period of a business cycle during which total
production and total employment are increasing above
the trend growth
Contraction The period of a business cycle during which total
production and total employment are falling below the
trend growth
Recession The period of a business cycle during which total
production and total employment are decreasing
Inflation rate The percentage increase in the general price level in the
economy from one year to the next
, Gross Domestic Product (GDP) The market value of all final goods and services
produced in a country during a period of time
Final good or service A new good or service which is the end product of the
production process that is purchased by the final user
Intermediate good or service A good or service that is an input into another good or
service
Value added The market value a firm adds to a product
Measuring GDP 1. Production method
2. Expenditure method
3. Income method
Circular-flow diagram
Transfer payments Payments by the government to individuals for which the
government does not receive a good or service in
return
Components of GDP Y = C + I +G + (X-M)
Consumption (C) Spending by households on goods and services, not
including spending on new houses
Investment (I) Spending by firms on new factories, office buildings,
machinery and inventories, plus spending by
households on new houses
Government purchases Spending by federal state and local government on
goods and services
Net exports (X-M) The expenditure on exports minus the expenditure on
imports
