Concurrent Economics: Study Guide, Ch.

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Vocabulary: Gross Domestic Product (GDP) Real GDP Per capita GDP Income transfers Capital intensive Productivity Monopoly In-kind income Progressive tax Regressive tax 1. How do we measure output for purposes of GDP? (In other words, what unit of measurement is used.) Why this unit of measurement?

2. What is the difference between real and nominal GDP?

3. How does U.S. per capita GDP compare with the world average?

4. What are the four major components of total output, or GDP?

5. Name and describe the three categories of consumer goods:

6. Why are durable goods cyclical, or very sensitive to economic trends?

7. What percent of GDP is investment goods? What percent is government services?

8. What is and is NOT counted as part of government services for purposes of calculating GDP?

9. How do you calculate net exports?

10. Describe the major changes in industry structure that have taken place in the United States over the past century:

11. What are the three types of business organization, and what are the major differences between them?

12. In what two ways did Marxs predictions of how output would be distributed turn out to be wrong?

13. Give one example each of a progressive and regressive tax: