Economics Test 13

Front 1

national income accounting

Back 1

measurement of the national economy's performance, dealing with the overall economy's output and income

Front 2

gross domestic product (GDP)

Back 2

total dollar value of all final goods and services produced in a nation in a single year

Front 3

net exports

Back 3

difference between what the nation sells to other countries and what it buys from other countries

Front 4

depreciation

Back 4

loss of value because of wear and tear to durable goods and capital goods

Front 5

net domestic product (NDP)

Back 5

value of the nation's total output (GDP) - toal value lost through depreciation on equipment

Front 6

national income (NI)

Back 6

total income earned by everyone in the economy

Front 7

personal income (PI)

Back 7

total income that individuals receive before personal taxes are paid

Front 8

transfer payments

Back 8

welfare and other supplementary payments that a state or the federal government makes to individuals

Front 9

disposable personal income (DI)

Back 9

income remaining for people to spend or save after all taxes have been paid

Front 10

inflation

Back 10

prolonged rise in the general price level of goods and services

Front 11

purchasing power

Back 11

the real goods and services that money can buy: determines the value of money

Front 12

deflation

Back 12

prolonged decline in the general price level of goods and services

Front 13

consumer price index (CPI)

Back 13

measure of the change in price over time of a specific group of goods and services used by the average household

Front 14

market basket

Back 14

representative group of goods and services used to compile the consumer price index

Front 15

base year

Back 15

year used as a point of comparison for other years in a series of statistics

Front 16

producer price index (PPI)

Back 16

measure of the change in price over time that United States producers charge for their goods and services

Front 17

GDP price deflator

Back 17

price index that removes the effect of inflation from GDP so that the overall economy in one year can be compared to another year

Front 18

real GDP

Back 18

GDP that has been adjusted for inflation by applying the price deflator

Front 19

aggregate demand

Back 19

total quantity of goods and services in the entire economy that all citizens will demand at any single time

Front 20

aggregate demand curve

Back 20

a graphed line showing the relationship between the aggregate quantity demanded and the average of all prices as measured by the implicit GDP price deflator

Front 21

aggregate supply

Back 21

real domestic output of producers based on the rise and fall of the price level

Front 22

business cycle

Back 22

irregular changes in the level of total output measured by real GDP

Front 23

recession

Back 23

part of the business cycle in which the nation's output (real GDP) does not grow for at least six months

Front 24

depression

Back 24

major slowdown of economic activity

Front 25

innovations

Back 25

inventions and new production techniques

Front 26

economic indicators

Back 26

statistics that measure variables in the economy

Front 27

leading indicators

Back 27

statistics that point to what will happen in the economy

Front 28

coincident indicators

Back 28

economic indicators that usually change at the same time as changes in overall business activity

Front 29

lagging indicators

Back 29

indicators that seem to lag behind changes in overall business activity

Front 30

blue chip stocks

Back 30

stocks which trade at a premium because the firms they represent are perceived to be highly effective

Front 31

bull market

Back 31

best market -- when stock prices are rising

Front 32

bear market

Back 32

when stock prices are falling

Front 33

Dow Jones Industrial Average

Back 33

an average of stock prices on the New York exchange representing the most widely traded industrial firms in the US

Front 34

initial public offering

Back 34

stock offered for sale by a new firm which had previously never been traded

Front 35

Nasdaq

Back 35

An alternative to the NYSE representing primaily technology-intensive firms

Front 36

New York Stock Exchange

Back 36

A place where stocks are traded located on Wall Street in Manhattan.

Front 37

SEC

Back 37

Securities and Exchange Commission - a government entity charged with monitoring trades in stocks and securities. They are responsible for apprehending individuals engaging in "insider trades"