Unit 4 Key Terms Part 3 Flashcards
(48 cards)
the market value of all final goods and services produced within a country during a given period of time
Gross Domestic Product
the price buyers are willing to pay for a good or service in a competitive market
Market Value
any new good that is ready for consumer use; final goods are included in the calculation of GDP
Final Good
a good used in the production of a final good; intermediate goods are not included in the calculation of GDP
Intermediate Goods
the value of all exports minus all imports
Net Export
a measure of a country’s economic output (GDP) valued in current dollars; nominal GDP does not reflect the effects of inflation
Nominal GDP
the value of a dollar in the year it is spent; a measure of the dollar’s value that reflects current purchasing power, without taking inflation into account
Current Dollars
a measure of a country’s economic output (GDP) valued in constant dollars; real GDP reflects the effects of inflation
Real GDP
the value of the dollar fixed at a specified base year; a measure of the dollar’s value adjusted for inflation to reflect purchasing power over time
Constant Dollars
a nation’s real GDP divided by its population; a measure of average economic output per person
Per Capita GDP
the percentage of people in a country who can read and write
Literacy Rate
the number of years, on average, that a person is expected to live; a key indicator of a nation’s health and well-being
Life Expectancy
the rate at which babies die during their first year of life; a key indicator of a nation’s health and well-being
Infant Mortality
the percentage of the labor force that is not employed but is actively seeking work
Unemployment Rate
a type of unemployment that results when workers are seeking their first job or have left one job and are seeking another
Frictional Unemployment
a type of unemployment that results when the demand for certain skills declines, often because of changes in technology or increased foreign competition; under such conditions, workers may need retraining to find new jobs
Structural Unemployment
a type of unemployment that results when businesses shut down or slow down for part of the year, often because of weather
Seasonal Unemployment
a type of unemployment that results from a period of decline in the business cycle; unemployment caused by a contraction
Cyclical Unemployment
the percentage of the labor force without work when the economy is at full employment; a condition in which the economy is strong and there is no cyclical unemployment
Natural Rate of Unemployment
unemployed workers who have ceased to look for work; discouraged workers are not considered part of the labor force and are not factored into the unemployment rate
Discouraged Workers
people who settle for part-time employment because they are unable to find full-time work
Involuntary Part-Time Workers
a sector of the economy based on illegal activities, such as drug dealing and unlawful gambling
Underground Economy
the percentage increase in the average price level of goods and services from one month or year to the next
Inflation Rate
a measure of the average change in price of a type of good over time
Price Index