Eco Measurements Review

Multiple Choice

GDP is the total value of goods and services

• produced all over the world
• produced in one month
• produced within a nation's borders
• produced by a singl company

Multiple Choice

All final goods and services that make up GDP can be expressed in the form:

• GDP = C + I - G + (X + N).

• GDP = C + I + G + (X + N).

• GDP = C + I + G + (X - N).

• GDP = C + I + (X - N).

Multiple Choice

Which of the following would represent an addition to a nation’s GDP?

• Ms. Jones purchases a share of stock in a technology start-up company

• An auto retailer purchases imported cars

• The government hires workers to install streetlights

• A business sells used watches

• A mother prepares a home cooked meal for her family

Multiple Choice

This is unemployment because people are between jobs or who are looking for their first job:

• frictional
• structural
• seasonal
• cyclical

Multiple Choice

Farm helpers are unemployed when the cropping season is over.

• frictional

• cyclical

• structural

• seasonal

Poll

How confident do you feel about this exam? On a scale of 1-10.

• 1-3

• 4-6

• 6-9

• 10 :)

Multiple Choice

Caleb takes a job selling cars.  In six months he is laid off due to a slowing economy and poor car sales.  What type of unemployment is Caleb experiencing?

• frictional
• structural
• seasonal
• cyclical

Multiple Choice

Who among the following would be considered as unemployed?

• A college student of legal age to work but who is still in school full time.

• An entrepreneur in the process of starting a new business.

• A secretary who was laid-off from work & is looking at job ads

• A housewife taking care of three children.

Multiple Choice

Inflation is defined as an increase in:

• real wages of workers.
• real GDP.
• the average price level.
• all consumer products.

Multiple Choice

The "market basket" that is a list of the prices of items purchased by an average consumer is known as the

• unemployment rate
• consumer price index
• producer price index
• economic growth rate

Multiple Choice

"Prices for consumer goods down 5% this year!" This headline affects which economic indicator the most?

• Unemployment

• Consumer Price Index

• Productivity

• Gross Domestic Product (GDP)

Multiple Choice

If you live on a fixed income, how will you be affected by inflation.

• You are hurt because your purchasing power has decreased.
• You are helped because your purchasing power has increased.
• You are helped because interest rates rise.
• You are hurt because interest rates rise.

Multiple Choice

What is happening to the economy in a period of economic contraction?

• GDP is rising and unemployment is falling.
• GDP is rising and unemployment is rising.
• GDP is falling and unemployment is rising.
• GDP is falling and unemployment is falling.

Multiple Choice

If GDP falls for at least 2 Quarters, it is considered what stage of the business cycle?

• Expansion

• Recession

• Prosperity

• Recovery

Multiple Choice

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

Multiple Choice

GDP will begin to decline at-

• the peak.

• the trough.

• the contractionary phase.