Economic Indicators Quiz

Macroeconomics is the study of individual markets.

• True
• False

People who receive a Cost of Living Adjustment (COLA) are not affected by inflation.  In other words, their purchasing power does not decrease.

• True
• False

In a typical business cycle model, which stage immediately follows a trough?

• Expansion
• Contraction
• Peak

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.

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

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.

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

Who would benefit from inflation?

• Michael, a banker who has extended many fixed rate loans.
• Trenton, who has a fixed, contracted salary with no COLA.
• Emily, who took out a loan at a low fixed-interest rate.
• Kennedy, a businessman whose costs are rising.

Which of the following would NOT be considered part of the labor force?

• Tyler, a banker who feels he is overqualified for his job.
• Savana, who is unemployed but has attended  three job interview in the last month.
• Ricky, who has a part-time job but wants a full-time job.
• Garrett, a stay-at-home dad.

Adult education and training programs would do the most to alleviate

• cyclical unemployment
• frictional unemployment
• seasonal unemployment
• structural unemployment