Chapter 2 - The U.S. Economy: A Global View Flashcards Preview

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Flashcards in Chapter 2 - The U.S. Economy: A Global View Deck (12)
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1
Q

Gross Domestic Product (GDP)

A

The total market value of all final goods and services produced within a nation’s border in a given time period.

2
Q

per capita GDP

A

The dollar value of GDP divided by the total population; average GDP

3
Q

Economic Growth

A

An increase in output (real GDP); an expansion of production possibilities.

4
Q

Factors of Production

A

Resources inputs used to produce goods and services, such as land, labor, capital, entrepreneurship.

5
Q

Human Capital

A

The knowledge and skills possessed by the workforce.

6
Q

Capital-intensive

A

Production processes that use a high ratio of capital to labor inputs.

7
Q

Productivity

A

Output per unit of input - for example, output per labor-hour.

8
Q

High Productivity

A

Factor Mobility
Technological Advances
Outsourcing and Trade

9
Q

Role of Government

A

Provide legal framework
Protecting the environment
Protecting consumers
Protecting labor

10
Q

Production Possibilities

A

The alternative combination of final goods and services that could be produced in a given period with all available resources and technology.

11
Q

Externalities

A

Cost (or benefit) of a market activity borne by a third party.

12
Q

Monopoly

A

A firm that produces the entire market supply of a particular good or service.