Unit 3 Mastery Check

Which of the following would be included in the US Gross Domestic Product (GDP)?

• Your midnight Taco Bell run of $4.53
• A $10 birthday check from your grandmother
• Apple buying microchips for the next iPhone
• Purchasing 1 share of Tesla stock

How is real GDP different from nominal GDP?

• Real GDP is adjusted for inflation
• Real GDP is NOT adjusted for inflation
• Nominal GDP is the average GDP per person
• They are the same thing

Which of the following is the MOST accurate measurement of economic growth for a country?

• Real GDP per capita
• Real GDP
• Nominal GDP
• Nominal GDP per capita

How do we calculate Real GDP per capita?

• Real GDP/Total population
• Nominal GDP - Real GDP
• Price x Quantity
• Real GDP x Total Population

Which of the following is the BEST indication of standard of living?

• Nominal GDP
• Real GDP
• Real GDP per capita
• Nominal GDP per capita

The Consumer Price Index (CPI) measures:

• The percentage change in the price of a basket of goods and services consumed by households
• The percentage change in the quantity of goods and services produced in a country
• The percentage change in the amount of goods and services produced by firms
• The percentage change in the price of a country's exports and imports

Which of the following is the best definition of inflation?

• An increase in the general level of prices in the economy
• A decrease in the general level of prices in the economy
• A decrease in the quantity of goods and services produced in the economy
• An increase in the quantity of goods and services produced in the economy

The inflation rate is defined as:

• The percentage increase in the quantity of goods and services produced in the economy
• The percentage increase in the price of a basket of goods and services consumed by households
• The percentage increase in the price of a basket of goods and services produced by firms
• The percentage increase in the number of unemployed individuals in the economy

When the inflation rate is positive, which of the following is true?

• The purchasing power of money decreases
• The purchasing power of money increases
• The value of money remains constant
• The value of money becomes negative

Which of the following best explains the concept of purchasing power?

• The amount of money that can be earned through productive work
• The amount of money that a person has saved in the bank
• The amount of goods and services that can be purchased with a given amount of money
• The amount of money that a person owes to others.