Intro to Business - Chapter 2

GDP measures a country's economic output during:

• One Week

• One Year

• One Month

• Five Years

Which of these items would be counted when measuring GDP?

• Tomatoes still growing on the vine

• Sheets of steel

• Rolls of raw fabric

• A fully assembled washing machine

Dividing GDP by the total population of a country results in that country's:

• GDP per capita

• Gross GDP Rate

• Unemployment Rate

• Personal Income Per Capita

All of the following are part of the labor force EXCEPT:

• Martin, who is laid off but searching for jobs.

• Lindsay, a stay-at-home mom with two children

• Cody, who works as a supervisor in a nonprofit organization

• Marie, a 17-year-old who works at a grocery store.

In the early 1890's, the average employee in the United States worked about ________ hours per week.

• 40

• 60

• 75

• 100

________________ occurs at the peak of the business cycle.

• Recovery

• Recession

• Depression

• Prosperity

Which of the following is NOT a characteristic of a depression?

• High demand for goods and services

• Business failures

• A prolonged period of high unemployment

• GDP falls rapidly

Inflation:

• Increases the buying power of the dollar

• Tends to decrease wages

• Always discourages economic growth

• Decreases the buying power of the dollar

The money people deposit in banks and other financial institutions:

• Is lent to businesses to fund capital projects.

• Is an important factor in the economic growth of a country

• Generally earns interest for the depositors.

• All of these.

When a government spends less than it takes in, a budget ___________ is the result.

• Deficit

• Surplus

• Equilibrium

• Shortage