Chapter 10/11/12 (Macroeconomics) Review Sheet
Economics
Mr. Terpstra
The first section of this test will consist of matching questions. You will be asked to match definitions to several of the terms listed below. The second section of the test will be multiple choice. The third section of the test will be fill in the blank. You will need to know the definitions of several of the terms listed below, as well as being able to provide examples of, or explain the significance of, many of the terms listed below. You will also need to know the answers to the questions listed below. Most of these merely require a listing of items, but some require a more in-depth explanation. I recommend working with other students in class to test your knowledge of the terms and the importance/examples of them and to answer the questions.
Terms for Identification:
gross domestic product (GDP), personal consumption expenditure, gross investment, nominal GDP, real GDP, price index, underground economy, gross national product, business cycle, expansion, peak, recession, depression, trough, leading indicators, coincident indicators, lagging indicators, real GDP per capita, labor productivity, capital-to-labor ratio, capital deepening, unemployment rate, discouraged worker, underemployed, frictional unemployment, structural unemployment, seasonal unemployment, cyclical unemployment, inflation, cost-push inflation, demand-pull inflation, consumer price index, market basket, inflation rate, poverty rate, transfer payment, privatization, interest group, lobbyist
Concepts:
How do economist calculate GDP?
What are some of the limitations of GDP?
What other statistics do economists use to measure the economy?
What are the four phases of the business cycle?
What factors influence the business cycle?
What are the three leading indicators used to determine the current phase of the business cycle and predict where the economy is headed?
Why is economic growth important?
What are the requirements of economic growth?
What is the relationship between economic growth and productivity?
What are the four main types of unemployment?
What are the main economic costs of high unemployment?
What do economists look at when evaluating price changes over time?
How does inflation affect the U.S. economy?
What factors have influenced the growth of government?
Why does government regulate businesses?
What are the effects of government regulation?
How can people influence the government?
The final section of the test is the essay section. The question will be selected by Mr. Terpstra from those listed below. The essay should be written in paragraph form and thoroughly answer the question.
- Define the term gross domestic product, being sure to fully explain the meaning of each phrase in the definition.
- Explain the factors that have the greatest impact on productivity growth.
- Explain the effects of unemployment on the individual and the economy as a whole.
- Explain why government has grown throughout the history of the United States.