ECON 204 Exam 1 CSU Questions With 100% Correct!!

GDP - Total market value for all goods and services produced within a nation's borders in a given time period. Per Capita GDP - Nation's total output divided by its total population. Economic Growth - Increase in output (real GDP); expansion of production possibilities. Price Stability - How stable prices are. Mix of Output - Always include both goods and services. Changing Mix of Output - Used to be all goods less services. Now its all services and less goods. Factors of Production - Resource inputs used to produce goods and services. Human Capital - The knowledge and skills possessed by the workforce. Capital-intensive - Production processes that use a high ratio of capital to labor inputs. Productivity - Output per unit of input Factor Mobility - Continuing ability to produce the goods and services that consumers demand also depends on our agility in reallocation resources from one industry to another Technological Advance - Whenever technology advances, an economy can produce more output with existing resourcesProduction Possibilities - The alternative combination of final goods and services that could be produced in a given period with all available resources and technology Providing a legal framework - By establishing ownership rights, contract rights, and other rules of the game, the government lays the foundation for market transactions Protecting the environment - The government also intervenes in the market to protect the environment Externalities - Costs (or benefits) of a market activity borne by a third party Monopoly - A firm that produces the entire market supply of a particular good or service Income quintile - One-fifth of the population, rank ordered by income National Income Accounting - The measurement of aggregate economic activity, particularly national income and its components GNP - Output produced by american owned factors of production regardless of where they're located Unreported Income - GDP statistics also fail to capture market activities that aren't reported to tax. Intermediate Good - Goods or services purchased for use as input in the production of final goods or services Value Added - Increase in the market value of a product that takes place at each stage of production processnominal GDP - Value of final output produced in a given period, measure in the prices of that period Real GDP - The value of final output produced in a given period Real GDP in year t formula - Nominal GDP in year t/price index Base year - Year used for comparative analysis; basis for indexing price changes Inflation - Increase in average level of prices of goods and services Depreciation - Consumption of capital in the production process NDP - GDP - depreciation Investment - Expenditures on new plans, equipment, and structures. Gross investment - Total investment expenditure in given time period