Economic Indicators Quiz

What is Gross Domestic Product (GDP)?

• The total value of all goods and services exported from a country in a specific time period.

• The total value of all goods and services produced within a country's borders in a specific time period.

• The total value of all goods and services imported into a country in a specific time period.

• The total value of all goods and services consumed by a country's population in a specific time period.

What are the components of GDP?

• consumption, investment, government spending, and imports

• consumption, investment, government spending, and net exports

• consumption, investment, taxes, and net exports

• consumption, savings, government spending, and exports

How is GDP calculated?

• By calculating the average income of all citizens in a country.

• By multiplying the total population of a country by the average income per capita.

• By adding up the total value of all imports and exports of a country.

• By summing up the total value of all goods and services produced within a country's borders during a specific time period.

The Unemployment Rate is the percentage of the labor force that ...

• is not actively seeking employment.

• is unemployed and actively seeking employment.

• that does not have a job

• is underemployed and actively full-time seeking employment.

How is the Unemployment Rate calculated?

• Subtract the number of employed individuals from the total labor force and multiply by 100.

• Multiply the number of unemployed individuals by the total labor force and divide by 100.

• Divide the number of unemployed individuals by the total population and multiply by 100.

• Divide the number of unemployed individuals by the total labor force and multiply by 100.

What is the Inflation Rate?

• percent increase in the general price level of goods and services in an economy over a period of time.

• the rate at which banks lend to each other in the short term.

• the total value of all goods and services produced in an economy over a period of time.

• the percent decrease in the general price level of goods and services in an economy over a period of time.

Which of the following is used to calculate the Inflation Rate ?

• Unemployment

• Consumer Confidence Index

• Consumer Price Index

• Gross Domestic Product (GDP)

The Consumer Price Index (CPI) is a measure of ...

• the average change over time in the prices paid by consumers for a market basket of consumer goods and services.

• the average change over time in the prices paid by businesses for goods and services.

• the average change over time in the prices paid by corporations for commodities like wheat or steel

• the average change over time in the stock market

What is the role of Interest Rates in the economy?

• Interest rates have no impact on borrowing costs or investment decisions.

• Interest rates influence borrowing costs, investment decisions, and consumer spending.

• Interest rates only affect consumer spending in certain industries.

• Interest rates have a direct impact on the stock market.