Objective 1.02 Handouts

6200/6600 Principles of Business and Personal Finance Summer 2010 Page 41

Name ____________________ Class __________ Date __________

Measuring Economic Activities OrganizerDirections: Provide the requested information.

Ways to Measure Economic Activities

1. Describe Gross Domestic Product

(GDP)

Category

Example product

House valued at $180, 000

Category

Example product

$5000 monthly lease for a beauty salon

______________

Category

Example product

Concert sponsored by the city

______________

Category

Write the major categories and other examples, as possible, of economic activities included in the GDP


Measuring Economic Activities Organizer Continued

= ÷2. GDP per capitadetermines ____________________________________

EmploymentWhich people are included in the unemployment rate?

ProductivityHow can productivity be increased?

ExamplesSheetz convenience store provides touch-screen computers for customers to place food orders instead of sales associates taking food orders._____________________________________________________________________________________________________________________________________________________________________________________________

3. Labor Activities



4. Consumer Spending List and describe the economic indicators for consumer spending:

_____________________

____________________________________________________________________________________________________________________________________________

_____________________

____________________________________________________________________________________________________________________________________________

5. Investment Activities

Describe how the listed investment activities promote economic growth:

Personal Savings

Examples

Mary has saved over $800 in a local bank.

Jack borrowed $600 from a local bank to buy a new oven.

______________________

______________________

______________________

The Stock Market

Examples

Jason purchased stock of a

pharmaceutical company.

______________________

______________________

______________________

The Bond Market

Examples

The bond passed to fund

several city parks.

______________________

______________________

______________________



6. Borrowing Activities

Government

Describe how government borrowing can

lead to a budget deficit.

Businesses

Describe how using borrowed money

wisely can impact businesses.


Name_________________________ Class ________________ Date _________

Very Important Business Terms ActivityDirections: In the right-hand column of the table, describe why the terms listed in the left-hand column are important.

Measuring Economic Activities

Very Important Business Terms

Why is the term important to the topic?

Gross domestic product (GDP)

Example: GDP indicates the health and growth of an economy. If the GDP for a country is steadily increasing, this is usually an indication of higher demands for goods and services. A higher demand for goods and services result in more goods and services being produced.

GDP per capita

Productivity

Personal income

Retail sales

Capital projects


Very Important Business Terms Continued

Economic Conditions

Business cycle

Prosperity

Recession

Depression

Recovery

Inflation

Deflation

Stock

Bond


Name ____________________ Class __________ Date __________

GDP Map ActivityDirections: Select three countries of your choice from the website www.theodora.com/wfb and obtain requested information about each one.

"english.freemap.jp." Free blank outline world maps. 11 Jan 2006. Sankakukei, InoueKeisuke. 14 Nov 2008 <http://english.freemap.jp/world_e/img/4/2.gif>.

Part 1 Country 1 Country 2 Country 3

GDP last year

Population last year

GDP per capita last yearGDP two years ago

Population two years agoGDP per capita two years ago


GDP Map Continued

Part 2Using each country’s GDP for one and two years ago, write a statement about eachone’s economic performance.

Country 1 ___________________________________________________________Country 2 ___________________________________________________________Country 3 ___________________________________________________________

Part 3Using each country’s GDP per capita for one and two years ago, write a statement

about each one’s economic performance.Country 1 ___________________________________________________________Country 2 ___________________________________________________________Country 3 ___________________________________________________________

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Economic Conditions Organizer Continued

Part C

Part D

How do interest rates impact businesses? ________________________________________________________________________________________________________________________________________________________________________________

Consumer Prices

InflationDefine:

How may high demand and limited supply of products cause inflation?

How is the consumer price index calculated?

How does inflation impact consumer buying power?

DeflationDefine:

How do lower prices impact deflation?

List the primary saving or borrowing purpose for each type of interest rates

Documents

Objective 1.02 Handouts