About This Chapter
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
- 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.
1. Growth Policy and Economic Productivity
What do savings accounts and promoting education have to do with helping the economy to grow? In this lesson, we will explore government policies that help promote higher long-run economic growth.
2. Economic Growth: How to Raise a Nation's Potential Output
Learn the truth about long run economic growth, including how economists define and illustrate an increase in the potential output of a nation through change in real GDP.
3. Productivity: The Economy's Long-Run Growth Engine
Using real-world examples, you'll learn more about what productivity is and four things that determine it within a nation - physical capital, technology, human capital, and natural resources.
4. Circular Flow of Economic Activity: The Flow of Goods, Services & Resources
Learn about the simple model used to describe where money goes and what it is exchanged for in a market economy. The circular flow model of economic activity shows you the basic relationships between households, firms and the government.
5. Gross Domestic Product: Definition and Components
Learn how economists measure the total production of an economy using gross domestic product (GDP). This lesson also outlines the components that make up a GDP. How do we calculate the economic value of a nation?
6. Gross Domestic Product: Items Excluded from National Production
In this lesson, you'll gain a better understanding of what the gross domestic product is by exploring things that are excluded from it. Why do we count some items in the GDP but not others?
7. The Phillips Curve Model: Inflation and Unemployment
Can we have low unemployment and low inflation at the same time? Some economists think the answer is no. In this lesson, we'll explore the relationship between inflation and unemployment in the short run, what economists call the Phillips Curve.
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Other chapters within the Praxis Business Education - Content Knowledge (5101): Practice & Study Guide course
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