Ch 10: Praxis Business: Economic Indicators of Growth

About This Chapter

Get ready for the Praxis Business Education exam with lessons on economic indicators of growth. Work your way through the short video lessons and take the quick quizzes to check for understanding.

Praxis Business Education: Economic Indicators of Growth - Chapter Summary

Prepare to demonstrate your understanding of inflation and unemployment with guidance from the Phillips Curve Model. Let the lessons in this chapter guide your review of these crucial elements concerning economic indicators of growth:

  • Economic productivity
  • Growth policy
  • Raising a nation's potential output
  • Productivity
  • Circular flow of goods, resources and services
  • Components of gross domestic product
  • Exclusions from national production
  • Inflation and unemployment: Phillips Curve Model

Check your understanding of these topics by taking the quiz at the end of each lesson. Review any areas not yet mastered.

Praxis Business Education: Economic Indicators of Growth Objectives

The economics questions on your Praxis compose about 10% of the exam, and are approximately 12 of the 120 total questions. The economics portion of your test requires an understanding of the following concepts:

  • Economic indicators: growth, employment, productivity and the business cycle
  • Supply/demand, allocation of resources, scarcity, opportunity cost and factors of production
  • Economic systems: market vs. command economies, free enterprise and mixed economies
  • Role of government: taxation, fiscal policies, banking regulations and monetary policies
  • Market structures: competition, oligopolies and monopolies
  • Effects of market structures on pricing and the quality of goods/services

Review the economic indicators of growth with the lessons in this chapter, and pursue other chapters to further your study of economics for the Praxis.

7 Lessons in Chapter 10: Praxis Business: Economic Indicators of Growth
Test your knowledge with a 30-question chapter practice test
Growth Policy and Economic Productivity

1. Growth Policy and Economic Productivity

Setting fiscal policies to promote economic productivity is an important government function. Learn about fiscal policies and how the government uses them to promote economic growth through savings and investments, including investments in human capital and technology.

Economic Growth: How to Raise a Nation's Potential Output

2. Economic Growth: How to Raise a Nation's Potential Output

Nations strive to attain a high standard of living for their citizens, and economic growth is an important indicator of how well each nation achieves this. Learn about economic growth, its advantages, and how it is measured. Understand the role of productivity in raising a nation's potential output and increasing its economic growth.

Productivity: The Economy's Long-Run Growth Engine

3. Productivity: The Economy's Long-Run Growth Engine

Productivity, which is defined as the output per worker, is necessary to sustain a fruitful economy. Learn about the determinants of productivity (physical capital, technology, human capital, and natural resources) and the relationship between increased productivity and higher standards of living within an economy.

Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

4. Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

The circular flow model of economic activity is used to explain the relationship between businesses, households, and the government. Learn about the flow of goods and services in a market economy, the factors of production, and how the circular flow model of economic activity applies to real-world situations.

Gross Domestic Product: Definition and Components

5. Gross Domestic Product: Definition and Components

Gross domestic product (GDP) is defined as the measure of the total output of goods and services in the economy within a given period of time. Explore the components of GDP and learn how to calculate it.

Gross Domestic Product: Items Excluded from National Production

6. Gross Domestic Product: Items Excluded from National Production

Gross domestic product (GDP) refers to the total value of the goods and services that a nation produces during a one-year period. Learn about GDP, and recognize which items are excluded from national production data. Understand more about GDP by reviewing the definitions and examples of final and intermediate goods.

The Phillips Curve Model: Inflation and Unemployment

7. The Phillips Curve Model: Inflation and Unemployment

In 1958, A.W.H. Phillips discovered that whenever unemployment levels are low, inflation increases, but when unemployment is high, inflation decreases. Learn about the Phillips Curve Model and explore the inverse relationship between the rate of inflation and unemployment levels.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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