Monday, December 20, 2010

Post 13: 10 things I learned from the practice Quizzes

1. Although GNP is more accurate, most countries use GDP.
2. Government transfer payments aren't included in government spending.
3. The underground economy isn't included in GDP because the underground economy is either illegal activities or unreported legal activities.
4. Anything that does not deal with money (barter transactions, housework, or self-repairs) are considered non market activities.
5. The business cycle is the changes in the market economy and it includes 6 different phases.
6. War is considered an external factor that may change the business cycle.
7. Indicators predict the future of the business cycle whether they be lagging or coincident indicators.
8. The amount of capital stock to worker is called  the capital-to-labor ratio.
9.  A country's standard of living decreases without long term economic growth.
10. Economists usually measure growth per capita.

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