Transcript ITB Chap 02
Chapter 2 Economic Activity 2-1 Measuring Economic Activity 2-2 Economic Conditions Change 2-3 Other Measures of Business Activity Introduction to Business © Thomson South-Western LESSON 2-1 Measuring Economic Activity Goals Define gross domestic product. Describe economic measures of labor. Identify economic indicators for consumer spending. Chapter 2 Slide 2 Introduction to Business © Thomson South-Western Key Terms Gross Domestic Product (GDP) GDP per capita unemployment rate productivity personal income retail sales Chapter 2 Slide 3 Introduction to Business © Thomson South-Western GROSS DOMESTIC PRODUCT (GDP) Components of GDP Comparing GDP Chapter 2 Slide 4 Introduction to Business © Thomson South-Western Comparison of GDP in Selected Countries Chapter 2 Slide 5 Introduction to Business © Thomson South-Western >> C H E C K P O I N T What types of economic activities are not included in GDP? Chapter 2 Slide 6 Introduction to Business © Thomson South-Western LABOR ACTIVITIES Employment Productivity Chapter 2 Slide 7 Introduction to Business © Thomson South-Western >> C H E C K P O I N T What are ways to increase productivity? Chapter 2 Slide 8 Introduction to Business © Thomson South-Western CONSUMER SPENDING Personal income Retail sales Chapter 2 Slide 9 Introduction to Business © Thomson South-Western >> C H E C K P O I N T What are the main sources of personal income? Chapter 2 Slide 10 Introduction to Business © Thomson South-Western LESSON 2-2 Economic Conditions Change Goals Describe the four phases of the business cycle. Explain causes of inflation and deflation. Identify the importance of interest rates. Chapter 2 Slide 11 Introduction to Business © Thomson South-Western Key Terms business cycle prosperity recession depression Chapter 2 Slide 12 recovery inflation price index deflation Introduction to Business © Thomson South-Western THE BUSINESS CYCLE Prosperity Recession Depression Recovery Chapter 2 Slide 13 Introduction to Business © Thomson South-Western >> C H E C K P O I N T What are the four phases of the business cycle? Chapter 2 Slide 14 Introduction to Business © Thomson South-Western CONSUMER PRICES Inflation Causes of inflation Measuring inflation Deflation Chapter 2 Slide 15 Introduction to Business © Thomson South-Western >> C H E C K P O I N T What are the main causes of inflation? Chapter 2 Slide 16 Introduction to Business © Thomson South-Western INTEREST RATES Types of interest rates Changing interest rates Chapter 2 Slide 17 Introduction to Business © Thomson South-Western >> C H E C K P O I N T How do interest rates affect business activities in our economy? Chapter 2 Slide 18 Introduction to Business © Thomson South-Western LESSON 2-3 Other Measures of Business Activity Goals Discuss investment activities that promote economic growth. Explain borrowing activities by government, business, and consumers. Describe future concerns of economic growth. Chapter 2 Slide 19 Introduction to Business © Thomson South-Western Key Terms capital project stock bond budget surplus budget deficit national debt Chapter 2 Slide 20 Introduction to Business © Thomson South-Western INVESTMENT ACTIVITIES Personal savings The stock market The bond market Chapter 2 Slide 21 Introduction to Business © Thomson South-Western >> C H E C K P O I N T Name some examples of capital projects. Chapter 2 Slide 22 Introduction to Business © Thomson South-Western BORROWING Government debt Business debt Consumer debt Chapter 2 Slide 23 Introduction to Business © Thomson South-Western >> C H E C K P O I N T What is the cause of a budget deficit? Chapter 2 Slide 24 Introduction to Business © Thomson South-Western FUTURE ECONOMIC CHALLENGES Limited access to health care Need for proper housing for many people Traffic and crime Unemployment Chapter 2 Slide 25 Introduction to Business © Thomson South-Western >> C H E C K P O I N T What are future economic concerns for a country’s economy? Chapter 2 Slide 26 Introduction to Business © Thomson South-Western