Economics Test One Chapter One

Front 1

the dollar value of gdp divided by total population; average gdp

Back 1

per capita gdp

Front 2

an increase in output: an expansion of production possibilities.

Back 2

economic growth

Front 3

expenditures on new plant, equipment, and structures in a given time period, plus changes in business inventories.

Back 3

investment

Front 4

payments to individuals for which no current goods or services are exchanged, such as, social security, welfare, unemployment benefits.

Back 4

income transfers

Front 5

goods and services sold to foreign buyers

Back 5

exports

Front 6

goods and services purchased from forein sources.

Back 6

imports

Front 7

the value of exports minus the value of imports

Back 7

net exports

Front 8

the ability of a country to produce a specific good at a lower opportunity cost than its trading partners.

Back 8

comparative advantage

Front 9

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

Back 9

factors of production

Front 10

output per unit of input, such as output per labor hour.

Back 10

productivity

Front 11

production processes that use a high ratio of capital to labor inputs

Back 11

capital intensive

Front 12

the knowledge and skills posessed by the work force

Back 12

human capital

Front 13

costs of a market activitey borne by a third party

Back 13

externalties

Front 14

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

Back 14

monopoly

Front 15

one fifth of the population, ranked ordered by income

Back 15

income quintile