Examination should include an explanation of how gross domestic product (GDP), gross national product (GNP), and consumer price index (CPI) are used as economic measures. Examination also focuses on forces behind the fluctuations in interest rate levels, unemployment, CPI, inflation rate, balance of trade, level of foreign debt, technological progress, and cost of living and how these are interrelated.
Process/Skill Questions:
- What are the components of GDP for selected countries?
- What are the problems in measuring the GDP?
- How can progress in technology affect the economic growth of a country?
- How are GDP and GNP similar? How are they different?
- What are alternative measures to GDP (e.g., "true cost economics")?
- How do world events affect GDP? GNP? What are recent examples?
- What is the relationship between economic indicators and human progress?
- How does the level of unemployment affect economic growth?