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Chapter 2 Economic Activity

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Chapter 2 Economic Activity

  1. 1. Chapter 2 Economic Activity By: David Palazzo Block 3
  2. 2. GDP ( Gross Domestic Product) <ul><li>Total dollar value of all final goods and services produced in a country during one year. </li></ul><ul><li>There are four major categories of economic activity: </li></ul><ul><li>Consumer spending for food, clothing, housing, and other spending </li></ul><ul><li>Business spending for buildings, equipment, and inventory items. </li></ul><ul><li>Government spending to pay employees and buy supplies and other goods and services </li></ul><ul><li>The exports of a country less the imports into the country. </li></ul>
  3. 3. GDP per Capita <ul><li>This is the output per person. </li></ul><ul><li>Calculated by dividing GDP by the total population. </li></ul><ul><li>Increase in GDP per capita means that the economy is growing. </li></ul><ul><li>Decrease means the economy is having trouble. </li></ul>
  4. 4. Unemployment Rate <ul><li>The unemployment rate is the portion of the people in the labor force who are not working. People are considered unemployed if they are looking for work and willing to do it but can not find a job. </li></ul><ul><li>This is important because this shows the areas of the country that need the most help. </li></ul><ul><li>NC’s unemployment rate at the moment is at 8.7 </li></ul>
  5. 5. Personal Income <ul><li>Refers to salaries and wages as well as investment income and government payment to individuals. </li></ul>
  6. 6. Productivity <ul><li>It is important to have high productivity because without it we would not create as many goods and services which causes a decline in the economy. </li></ul><ul><li>More people means more productivity because there are more people to do the work. </li></ul>

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