ITB Ch 3 Test Review

Which one is NOT one of the 4 business cycles?

• Prosperity

• Recession

• Depression

• Recovery

• Poverty

What is the formula for calculating the unemployment rate?

• # unemployed / # in labor force * 100

• # employed / # in labor force * 100

• # unemployed / # people in US * 100

What does GDP stand for?

• Green Damage Poverty

• Gross Domestic Product

• Gross Domestic Profit

• Gosh Darn People

Which one is NOT one of the 4 types of unemployment?

• seasonal

• temporary

• industrial

• cyclical

• not wanted

Who satisfies public wants?

• Mr. Ruggieri

• The government

• Schools

• Big Business

Why does the US currently have a higher standard of living than in the past?

• GDP Grew

• GDP Shrank

• It doesn't

What is the national debt?

• The total amount of money the government owes

• When the government spends more than they bring in in taxes

• budget deficit

What is the difference between inflation and deflation?

• Inflation is when price rises, while prices fall with deflation

• Deflation is when price rises, while prices fall with inflation

• They are the same thing

If there is an increase in demand (shift to the right), what happens to the equilibrium quantity and price?

• Increases

• decreases

Which one is NOT one of the 4 factors of production?

• Human resources

• Natural Resources

• Labor Resources

• Plastic resources