Chapter 2 Economic Activity

Roblee

Gross Domestic Product (GDP)

• Economic growth refers to steady increase in production of goods and services in economic system.

• Gross Domestic Product-tl dollar value of all good and services produced in a country in a year.

Four Components of GDP

• Consumer spending for food, clothing, housing and other aspects.

• Business spending for buildings, equipment and inventory items.

• Government spending to pay employees and to buy supplies and other goods & services.

• Exports of a country less the imports into the country.

Look at page 34

• Figure 2-1

• Which country has the highest GDP per capita? (output per person)

• GDP / Population = GDP per capita

• What types of activities are not included in GDP?

Labor & Consumer Spending

• GDP• Unemployment rate• Productivity• Personal Income• Retail Sales• What are the main sources of personal

income?

Business Cycle

• Recurring ups and downs of GDP.

• Prosperity

• Recession

• Depression

• Recovery

Inflation

• Prices are going up

• Demand > supply

• C.p.i (compares prices from one year to a base/previous year)

Deflation

• Prices are going down

• Occurs in a recession and depression

Poster Categories

• Economic Resources– Define each

• Economic Decision Making– Trades off and Opportunity Cost– Steps

Poster Continued

• Three Economic Questions & Types of Economic Systems– Define

• U.S. Economic System– Define each

• Supply & Demand– Define and create chart for reference

Grade for Poster

• Accuracy of Definition and steps-10pt

• Photos to help illustrate concept-5 pts

• Summarize text, not word for word-10 pts

• Color and neatness-5 pts

• Counted as a quiz grade total 30 pts

Activity

• Internet Blogs– Provide comments, news and observations

about a topic.– Information must be confirmed.

• Assignment-search the internet for a blog that relates to the current economic condition of the United States.

Activity Continued

• Find at least five postings that talk about the current condition of the economy, using what we have talked about in class as a guide.

• Find one other website or source that backs up what your blog post stated.

• Summarize each posting and cite the source.• Cite the back up source.

Hand In To Me

• 1. Url for Blog post– Article title #1– Article title #2– Article title #3– Article title #4– Article title #5

• 2. Pick your favorite article and summarize briefly in your own words.

…Assignment Continued

• 3. Find Your Proof– Paste url of resource cite– Who and what was said to verify your data.– In other words what is your proof.