Fall 2024 FE Review Economics

Front

What is Gross Domestic Product (GDP) primarily used to measure? Options: The total value of goods and services produced in a country, The total amount of money in circulation, The total number of jobs available, The total amount of exports

Back

The total value of goods and services produced in a country

Front

How does an increase in demand affect the market equilibrium price, assuming supply remains constant?

Back

The equilibrium price increases.

Front

Which of the following best describes inflation? A general increase in prices and fall in the purchasing value of money, A decrease in the general price level of goods and services, An increase in the unemployment rate, A rise in the supply of goods

Back

A general increase in prices and fall in the purchasing value of money

Front

What is the natural rate of unemployment?

Back

The unemployment rate when the economy is at full employment.

Front

Which factor is most likely to cause a shift in the supply curve? Options: A change in consumer preferences, A change in production technology, A change in the price of complementary goods, A change in the number of consumers

Back

A change in production technology

Front

What happens to the GDP if the government increases its spending?

Back

GDP increases

Front

Which of the following is a consequence of high inflation? Increased purchasing power, Decreased cost of living, Erosion of savings, Stable prices

Back

Erosion of savings

Front

What is the primary goal of monetary policy in controlling inflation? Options: To stabilize the currency, To increase employment, To reduce government spending, To increase exports

Back

To stabilize the currency

Front

Which of the following is an indicator of economic growth? An increase in GDP, A decrease in unemployment, An increase in inflation, A decrease in exports

Back

An increase in GDP

Front

How is the unemployment rate calculated? Options: Number of unemployed divided by the labor force, Number of employed divided by the total population, Number of unemployed divided by the total population, Number of employed divided by the labor force

Back

Number of unemployed divided by the labor force