Chapter 2 Pp1


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Heath Barnacascel

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Chapter 2 Pp1

  1. 1. By: Heath Barnacascel Pd. 3 Principles of Business
  2. 2. GDP- Who has the highest? <ul><li>GDP- Gross Domestic Product- the total dollar value of all final goods and services produced in a country during one year </li></ul><ul><li>The United States of America has the highest GDP throughout the world </li></ul>
  3. 3. GDP Per Capita <ul><li>GDP Per Capita is another way to measure economic growth </li></ul><ul><li>GDP per capita is calculated by dividing GDP by the total population. </li></ul><ul><li>An increase in GDP per capita means that the economy is growing </li></ul><ul><li>A decrease may mean that an economy is having trouble </li></ul>
  4. 4. Unemployment Rate <ul><li>One economic statistic of concern is the Unemployment rate </li></ul><ul><li>The unemployment rate is the portion of people in the labor force who are not working </li></ul><ul><li>If you are not willing to work, you are not counted as unemployed </li></ul><ul><li>The North Carolina Unemployment Rate is: 9.5 </li></ul>
  5. 5. Personal Income <ul><li>Personal Income refers to salaries and wages as well as investment income and government payments to individuals </li></ul><ul><li>These funds provide the foundation for buying needed goods and services </li></ul><ul><li>Examples of Personal Income : </li></ul><ul><li>Factory Workers getting their pay checks at the end of the week for the work they did </li></ul><ul><li>People getting paid for their jobs </li></ul>
  6. 6. Productivity <ul><li>Productivity is the production output in relation to a unit of input, such as a worker </li></ul><ul><li>A higher productivity means that you are producing more products for consumers to buy and so the company will make more money </li></ul><ul><li>Newer and more advanced technology can improve productivity and also more employees can also improve productivity </li></ul>
  7. 7. Components of GDP <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 to buy supplies and other goods and services </li></ul><ul><li>The exports of a country less the imports into the country </li></ul>