Economics Unit 5 Quiz

The market value of all final goods and services produced within a country in a given period of time is the:

• wage-spiral price

• consumer price index

• gross domestic product

• net of exports minus imports

The difference between real and nominal GDP is that real GDP is adjusted for:

• inflation

• entitlement

• unemployment

• international trade

Keith lost his job at his company's telephone switchboard when the company installed an automated phone system. Which type of unemployment is this?

• cyclical

• frictional

• seasonal

• structural

Why is the unemployment rate above zero when the economy reaches full employment?

• Most jobs lay off workers when the economy slows down

• There are always some people in transition between jobs

• There are never enough jobs for everyone who wants one

• Most workers do not have enough training for the best jobs

One cause of inflation is:

• a rise in the cost of production

• a decrease in consumer demand

• a tightening of the money supply

• a growth in the size of inventories

A decline in economic activity over a period of at least six months is called a:

• contraction

• depression

• panic

• recession