economics preformance

What are microeconomics

specific behaviors and decision making on a small scale

what are macroeconomics

study national and global economic trends, help policy makers, business and individuals make informed decisions

What are the 3 economic goals

Economic Growth, Full Employment and Price Stability

Why is GDP important to show value in goods and services

shows healthy economy with increasing production and consumer spending

What is Consumer Price Index

Measures Change in prices of everyday goods and services

What is Product market

a market where goods and services are bought and sold

What is a factor market

Market for factors of production ( land , labor, capital and entrepreneur ability )

Firms are ____

Consumers

Households are _____

Producers

Labor force population

Number of people in a country 16+

Labor force

Number of people in a country that are classified as either employed or unemployed

Labor force participation rate

Percentage of working age population in the labor force

what is the US’s labor, force participation rate?

66%

what is the employed?

People who work for pay at least one hour every two weeks also people 16 years and older that have a job doesn’t matter if it’s a part-time or full-time as long as they work one hour every two weeks

what is unemployment

People who are out of work but looking also people 16 and older that do not have a job, but have actively searched for a job in the last four weeks

not in the labor force

Kids, military, retired people, stay at home mom and dad’s, the full-time students house and discouraged workers

what is frictional unemployment?

Between jobs, voluntary leave, good for individuals and society

what is structural unemployment?

Associated with lack of skills or declining industry can easily be replaced by machine

what is cyclical employment?

Associated with downturns in business cycle, bad for society and individuals

what is seasonal unemployment?

landscapes, vacation area workers, etc

what are some examples of cyclical unemployment?

recession, declining, consumer, demand, layoffs

what is full employment?

The levels of unemployment experience when the economy is producing at full potential

what is the US’s national rate of unemployment?

4 to 6%

how long is it to be considered a recession?

Six months

what is the formula for labor force?

Number of employees + number of unemployed

what is the formula for unemployment rate?

Number of unemployed / labor force x 100

what is the formula for labor force participation rate?

Labor force / adult population x 100

what is consumption

spending on durable goods, non durable goods, services

investment

business spending on capital and investoriesn

business spending on capital

spending in order to increase future output or productivity

what are investories

business assets that are ready to be ge sold

government purchases

all levels of government spending on final goods and services and infrastructure toward GDP

what does federal spending fall under

government purchases

federal spending is what

defense and non defense ( funding for health buildings , state / local spendings)

net exports

exports and imports

what are exports

creates a flow of money to the U.S. in exchange for domestic production

what are imports

create a flow of money away from the U.S. in exchange for foreign production

what is the formula for net exports

Export - Imports = Net exports

What is not counted in GDP

Intermediate goods, second hand sales, transfer payments from the government, financial transactions, non market transactions and black market economy

What is a example of transfer payments

welfare, social stability and social security

What is non market transactions

economic activity’s, goods or services exchanged without payment

examples of non market transactions

cooking at home, volunteering

intermediate goods

raw materials, components or services used as inputs in production process