Measuring an Economy

Multiple Choice

What does GDP measure?

• Total income of all citizens.

• Total value of all goods/services produced within a country.

• Government spending.

• Imports and exports only.

Multiple Choice

The Consumer Price Index measures:

• The total value of goods produced.

• The average cost of a "basket" of goods/services.

• Average household income.

• Number of unemployed workers.

Multiple Choice

A small, steady rate of inflation is generally seen as:

• Harmful to the economy.

• A result of unemployment.

• Caused only by government spending.

• A sign of progress and healthy economic growth.

Multiple Choice

Why might some unemployment be considered healthy?

• It allows freedom to change jobs willingly.

• It helps increase taxes.

• It causes inflation to go up.

• It increases Gross Domestic Product (GDP).

Multiple Choice

The Consumer Confidence Index measures:

• Actual consumer spending.

• Stock market performance.

• People's feelings/attitudes about the economy.

• Average wages and savings.