Economics Final Chapter 15 Sections 1, 2, & 3 Chapter 16 Sections 1 & 3 Chapter 18 Sections 1 & 2.

Economics FinalEconomics Final

Chapter 15 Sections 1, 2, & 3Chapter 15 Sections 1, 2, & 3

Chapter 16 Sections 1 & 3Chapter 16 Sections 1 & 3

Chapter 18 Sections 1 & 2Chapter 18 Sections 1 & 2

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Chapter 15Chapter 15Section 1Section 1

PopulationPopulation

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I.I. Explain how population is Explain how population is estimated in the United estimated in the United States.States.

A. United States PopulationA. United States Population

1. 1. Census.govCensus.gov An official count of the population every 10 An official count of the population every 10

years.years.

2.2. Counting the PopulationCounting the Population a)a) Urban PopulationUrban Population

Village or town with 2,500 or Village or town with 2,500 or more residents.more residents.

b) b) Rural PopulationRural PopulationSparsely populated area.Sparsely populated area.

http://www.census.gov/

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3.3. Historical Growth, since colonial Historical Growth, since colonial timestimes

a) a) The The Net Net population has population has grown.grown.

b) b) The rate of growth has The rate of growth has steadily decreased.steadily decreased.

c) c) The average size of The average size of households have households have decreased.decreased.

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4.4. Regional ChangeRegional Change a) a) Center of PopulationCenter of Population

Point where the country Point where the country would balance if it would balance if it could be laid flat and could be laid flat and if everyone weighted if everyone weighted the same.the same.

b) b) Moving east to westMoving east to west

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II. Describe the factors II. Describe the factors affecting future population affecting future population growth.growth.

A. Projected Population TrendsA. Projected Population Trends

1. 1. Factors Affecting GrowthFactors Affecting Growth a) a) DemographersDemographers

People who study growth, People who study growth, density, and other density, and other population factors.population factors.

b)b) Fertility RateFertility RateNumber of births that 1,000 Number of births that 1,000

women are women are expected to have in their expected to have in their lifetime.lifetime.

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1. 1. Factors Affecting GrowthFactors Affecting Growth c) c) Life ExpectancyLife Expectancy

The average remaining life The average remaining life span of people span of people who reach a certain age.who reach a certain age.

d)d) Net ImmigrationNet ImmigrationThe effect on the population The effect on the population

by people by people moving into and out of the moving into and out of the country.country.

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II. Describe the factors II. Describe the factors affecting future population affecting future population growth.growth. A. Projected Population TrendsA. Projected Population Trends

2.2. Projections by Age and by GenderProjections by Age and by Gender a) a) Baby BoomBaby Boom

Period of high birthrate from Period of high birthrate from 1946 - 19641946 - 1964

b)b) Population PyramidPopulation PyramidDiagram that shows the Diagram that shows the

breakdown of breakdown of population by age and gender.population by age and gender.

c) c) Dependency RatioDependency RatioRation of children and elderly Ration of children and elderly

per 100 persons per 100 persons age 18-64.age 18-64.

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3. 3. Projections by Race and Ethnic Projections by Race and Ethnic OriginOrigin

Two fastest growing minorities are Hispanic Two fastest growing minorities are Hispanic and Asian components.and Asian components.

End of Ch 15 Sec 1End of Ch 15 Sec 1

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Business Cycles and Business Cycles and FluctuationsFluctuations

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I.I. Explain the phases of the Explain the phases of the business cycle.business cycle.

A. Phases of the Business CycleA. Phases of the Business Cycle

1. 1. First Phase – RecessionFirst Phase – Recession Period of decline in the economy as Period of decline in the economy as

measured by real GDP.measured by real GDP.

2. 2. Second Phase – ExpansionSecond Phase – Expansion Period of recovery from a recession.Period of recovery from a recession.

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A. Phases of the Business CycleA. Phases of the Business Cycle

3. 3. Depression – not a common phaseDepression – not a common phase Severe economic state involving high Severe economic state involving high

unemployment, acute shortages, and unemployment, acute shortages, and excessive manufacturing capacity.excessive manufacturing capacity.

4. 4. Trend lineTrend line If no periods of expansion or recession occur.If no periods of expansion or recession occur.

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B. Points Along the Phases of the B. Points Along the Phases of the Business Business CycleCycle

1. 1. PeakPeak The point at which real GDP stops growing.The point at which real GDP stops growing.

2. 2. TroughTrough The turnaround point where real GDP stops The turnaround point where real GDP stops

going down.going down.

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II. Trace the history of II. Trace the history of business cycles in the business cycles in the United States.United States.

A. HistoryA. History

1. 1. The Great DepressionThe Great Depression Black Tuesday, October 29, 1929 Black Tuesday, October 29, 1929 Stock Market CrashStock Market Crash Disparity in the distribution of incomeDisparity in the distribution of income Too many people borrowed heavilyToo many people borrowed heavily

2. 2. Business Cycles since WWIIBusiness Cycles since WWII Recessions have occurred fairly regularlyRecessions have occurred fairly regularly

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III. Identify five causes of III. Identify five causes of business cycles.business cycles.

A. CausesA. Causes

1.1. Capital Expenditures – build and Capital Expenditures – build and buy, then buy, then layoff and fire.layoff and fire.

2.2. Inventory AdjustmentsInventory Adjustments 3.3. Innovation and ImitationInnovation and Imitation 4.4. Monetary Factors – easy and tight Monetary Factors – easy and tight

money money policies.policies. 5.5. External Shocks – wars and External Shocks – wars and

natural disastersnatural disasters

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III. Identify five causes of III. Identify five causes of business cycles.business cycles.

B. Predicting Business CyclesB. Predicting Business Cycles

1.1. Econometrics ModelEconometrics Model Macroeconomics model that uses algebra Macroeconomics model that uses algebra

equations to describe the economy.equations to describe the economy.

2.2. Index of leading indicatorsIndex of leading indicators Used to predict turning points in business Used to predict turning points in business

cycles.cycles.


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UnemploymentUnemployment

2020

I.I. Explain how the Bureau of Explain how the Bureau of Labor Statistics determines if a Labor Statistics determines if a person is employed.person is employed.

A. Measuring UnemploymentA. Measuring Unemployment

1. 1. UnemploymentUnemployment People available for work who made a specific People available for work who made a specific

effort to find a job during the past month.effort to find a job during the past month.

2. 2. Unemployment RateUnemployment Rate The number of unemployed persons divided The number of unemployed persons divided

by the total number of persons in the civilian by the total number of persons in the civilian labor force.labor force.

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I.I. Explain how the Bureau of Explain how the Bureau of Labor Statistics determines if a Labor Statistics determines if a person is employed.person is employed.

A. Measuring UnemploymentA. Measuring Unemployment

3. Limitations of the unemployment rate3. Limitations of the unemployment rate

a) a) Does not count those who Does not count those who have stopped have stopped looking for work.looking for work.

b)b) Does not include part-time Does not include part-time jobs.jobs.

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II. Describe five kinds of II. Describe five kinds of unemployment.unemployment.

A. Kinds of unemploymentA. Kinds of unemployment

1) Frictional Unemployment1) Frictional Unemployment Caused by workers who are “between jobs”Caused by workers who are “between jobs”

2) Structural Unemployment2) Structural Unemployment Results when a fundamental change in the Results when a fundamental change in the

operations of the economy reduces the operations of the economy reduces the demand for workers and their skills.demand for workers and their skills.

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A. Kinds of unemploymentA. Kinds of unemployment

3) Cyclical Unemployment3) Cyclical Unemployment Directly related to swings in the business cycle.Directly related to swings in the business cycle.

4) Seasonal Unemployment4) Seasonal Unemployment Results from a change in the weather or season.Results from a change in the weather or season.

5) Technological Unemployment5) Technological Unemployment Caused when workers are replaced by Caused when workers are replaced by

machines.machines.

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A. Full EmploymentA. Full Employment

Full employment is reached when the Full employment is reached when the unemployment rate drops below 5%.unemployment rate drops below 5%.


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Absolute and Comparative Absolute and Comparative AdvantagesAdvantages

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I.I. Explain the importance of Explain the importance of international trade in today’s international trade in today’s economy.economy.

A. The United States and International TradeA. The United States and International Trade

1. 1. The key to trade is specializationThe key to trade is specialization..

2.2. International TradeInternational Trade Commerce among the nations of the world.Commerce among the nations of the world. The U.S. imports billions of dollars in The U.S. imports billions of dollars in

products each year.products each year. The U.S. imports more than it exports The U.S. imports more than it exports

resulting in trade deficits.resulting in trade deficits.

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I.I. Explain the importance of Explain the importance of international trade in today’s international trade in today’s economy.economy.

A. The United States and International A. The United States and International TradeTrade

3.3. Necessity of TradeNecessity of Trade Without trade many products would not be Without trade many products would not be

available to the world.available to the world.

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II. Describe the meaning of II. Describe the meaning of absolute advantage.absolute advantage.

A. Absolute AdvantageA. Absolute Advantage

Country’s ability to produce more of a Country’s ability to produce more of a given product than another country.given product than another country.

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III. Relate the importance of III. Relate the importance of comparative advantage to comparative advantage to international trade.international trade.

A. Comparative AdvantageA. Comparative Advantage

1) 1) Country’s ability to produce a Country’s ability to produce a good at a good at a relatively lower opportunity cost.relatively lower opportunity cost.

2)2) Ability of a country to produce Ability of a country to produce more more efficiently.efficiently.


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Barriers to International Barriers to International TradeTrade

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I.I. Explain how international Explain how international trade can be restricted to trade can be restricted to protect special interest.protect special interest.

A. Restricting International TradeA. Restricting International Trade

1. 1. Tariffs – tax placed on importsTariffs – tax placed on imports a) a) protective tariffprotective tariff

a tariff high enough to a tariff high enough to protect less efficient protect less efficient domestic industriesdomestic industries

b)b) revenue tariffrevenue tariffdesigned to raise money designed to raise money

from imported goodsfrom imported goods

2.2. QuotasQuotas Limit placed on the quantities of a product Limit placed on the quantities of a product

that can be imported.that can be imported.

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II. Cite the main arguments for II. Cite the main arguments for protection.protection.

A. ProtectionistA. Protectionist A person who favors trade barriersA person who favors trade barriers

B. Arguments for barriersB. Arguments for barriers 1)1) National DefenseNational Defense

Too dependent leads to weaknessToo dependent leads to weakness

2) 2) Infant IndustriesInfant Industries New or emerging industries should be protected from New or emerging industries should be protected from

foreign competition. foreign competition.

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B. Arguments for barriersB. Arguments for barriers

3) Protecting Domestic Jobs3) Protecting Domestic Jobs

Most frequent argument used to support Most frequent argument used to support trade barriers.trade barriers.

Only works when other countries do not use Only works when other countries do not use trade barriers against us.trade barriers against us.

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B. Arguments for barriersB. Arguments for barriers

4) 4) Keep the money at homeKeep the money at home 5) 5) Helping the balance of paymentsHelping the balance of payments

The difference between the money paid to The difference between the money paid to and received from other nations.and received from other nations.

Trade deficit occurs when there is more Trade deficit occurs when there is more importing than exporting.importing than exporting.

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III. Relate the history of the III. Relate the history of the free trade movement.free trade movement.

A. Great DepressionA. Great Depression Most Favored Nation ClauseMost Favored Nation Clause

Allows a country to receive the same tariff Allows a country to receive the same tariff reduction the U.S. negotiates with another reduction the U.S. negotiates with another country.country.

B. WWIIB. WWII General Agreement on Tariffs and Trade (GATT)General Agreement on Tariffs and Trade (GATT)

Signed by 23 countries to do away with import Signed by 23 countries to do away with import quotas.quotas.

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III. Relate the history of the III. Relate the history of the free trade movement.free trade movement.

C. C. North American Free Trade Agreement North American Free Trade Agreement (NAFTA)(NAFTA)

United StatesUnited States CanadaCanada MexicoMexico Reduced tariffs between the three countriesReduced tariffs between the three countries

THE ENDTHE END

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Economics Final Chapter 15 Sections 1, 2, & 3 Chapter 16 Sections 1 & 3 Chapter 18 Sections 1 & 2.

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