Check Your Understanding
1 . Gasoline prices are rising, so people would like to drive hybrid cars. But hybrids are more expensive than
a comparable non-hybrid car. What could a local, state, or federal government do to increase h
1. Why is it that America uses heavy duty street cleaning machines driven by one person but other countries
employ many people with brooms?
2. In which of the three basic questions facing any society does technology play the greatest role?
3. Explain the
Describe the three measures of inflation in use today.
2. Who loses from unanticipated inflation? who benefits?
3. Descirbe the possible losses to our society and the economy when people are unemployed.
4. Why do teenagers and young people have high un
1. What is a key problem with the way the NBER dates recessions and recoveries?
2. Descirbe the circular flow diagram.
3. Describe why GDP can be computed using either expenditures or income.
4. In your own words, describe the major concep