Principles of Business Chapter 2 Test

The Consumer Price Index (CPI) measures?

• inflation

• consumer debt

• retail sales

• interest rates

A _________ occurs when a government spends less than it takes in

• budget deficit

• budget shortage

• budget over-run

• budget surplus

There has never been a true depression in the United States

• True

• False

A bond represents a debt for an organization

• True

• False

All people above 16 who are actively working or seeking work make up the _________

• unemployment rate

• creditor pool

• labor force

• labor organization

If you want to save money at a savings institution, you would be most interested in the __________

• prime rate

• discount rate

• certificate of deposit

• T-bill rate

Gross Domestic product (GDP) is the dollar value of all

• final goods and services produced in a country during one year

• goods and services produced in a country during one year

• intermediate and final goods and services produced in one year

• final goods and services produced in or imported in to a country during one year

The recurring ups and downs of gross domestic product (GDP) in an economy is called the

• stock market

• bond market

• money cycle

• business cycle

If intermediate goods were counted as a part of gross domestic product (GDP), the value of these goods would be counted twice

• True

• False

Deflation has occurred in the United States

• True

• False