Economics Review 2020

What is Economics?

• The study of money or being rich

• The study of the stock market.

• The study of people and choices.

Macroeconomics concentrates on the behavior of people and organizations in markets for particular products or services.

• TRUE

• FALSE

Which economic system allows all or most of the factors of production and distribution to be privately owned and operated for profit?

• Capitalism

• Socialism

• Communism

• Mixed Economy

What are three major indicators of economic conditions?

• Capitalism, Socialism, and Communism

• Inflation, Deflation, and Stagflation

• Gross Output, Consumer Price Index, and Producer Price Index

• Gross Domestic Product, Unemployment Rate, and Price Indexes

The phases of the business cycle include Inflation, Recession, Depression, and Recovery.

• TRUE

• FALSE

What is Frictional Unemployment?

• Unemployment due to a recession or a similar downturn in the business

• Unemployment due to the change in season

• Unemployment due to a mismatch between the skills that unemployed workers possess and the skills required to perform a job

• Unemployment due to quitting because of personal reasons

What is Seasonal Unemployment?

• Unemployment due to a recession or a similar downturn in the business

• Unemployment due to the change in season

• Unemployment due to a mismatch between the skills that unemployed workers possess and the skills required to perform a job

• Unemployment due to quitting because of personal reasons

What is Structural Unemployment?

• Unemployment due to a mismatch between the skills that unemployed workers possess and the skills required to perform a job

• Unemployment due to a recession or a similar downturn in the business

• Unemployment due to the change in season

• Unemployment due to quitting because of personal reasons

What is Cyclical Unemployment?

• Unemployment due to a recession or a similar downturn in the business

• Unemployment due to the change in season

• Unemployment due to a mismatch between the skills that unemployed workers possess and the skills required to perform a job

• Unemployment due to quitting because of personal reasons

_______ is when the federal government’s collection of tax revenues is less than what it spends in a given year.

• GDP Deflator

• Federal Reserve allowance

• National Deficit

• Balance of Payments Deficit