Health of Economy Test-12/19, 12/20 2018

Gross Domestic Product (GDP) ONLY refers to the total value of FINAL goods and services produced in a country in one year

• True
• False

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities

Gross Domestic Product measures the 

• quantity of the goods and services produced in a given year, listed item by item, within a country.
• market value of the final goods and services produced in a given year within a country.
• measures the market value of the domestic labor in a given year within a country. 
• market value of the final goods and services consumed by households in a given year within a country.

Most countries try to maintain an inflation rate of ______ per year.

• One percent or less

• Two to three percent

• Four to five percent

• Six to seven percent

Who is most likely to be hurt by inflation?

• someone who borrowed money
• a retiree on a fixed income
• a business owner
• the U.S. government

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity

Which of the following groups suffer from high inflation

• Borrowers
• Lenders
• Taxpayers
• Property Investors

What is inflation?

• rise in all prices
• rise in most prices
• rise in some prices
• rise in general prices

The percentage change in the price level from a previous period

• Unemployment rate
• Inflation rate
• GDP
• CPI

What is the unemployment????

• decisions to work based on each individuals' valuation of their own work

• proportion of younger workers in the labor force

• the situation of actively looking for employment but not being currently employed.

• person who is simultaneously an income earner,