Economic Indicators Quiz

What is Gross Domestic Product (GDP)?

• 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.

• 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.

What does the Unemployment Rate measure?

• Number of job vacancies

• Average salary of employed individuals

• Number of people in the labor force

• Percentage of unemployed people in the labor force

What is the Inflation Rate?

• The inflation rate is the percentage change in the unemployment rate over a period of time.

• The inflation rate is the percentage change in the general price level of goods and services over a period of time.

• The inflation rate is the percentage change in the stock market index over a period of time.

• The inflation rate is the percentage change in the exchange rate of a currency over a period of time.

Which economic indicator measures the overall health of an economy?

• Gross Domestic Product (GDP)

• Unemployment Rate

• Consumer Price Index (CPI)

• Stock Market Index

Which of the following is not an economic indicator?

• GDP

• Unemployment rate

• Inflation rate

• Temperature

What is the formula to calculate GDP?

• GDP = C + I + G + (X + M)

• GDP = C - I + G + (X - M)

• GDP = C + I - G + (X - M)

• GDP = C + I + G + (X - M)

An economic indicator shows the

• How many people like their jobs

• How much students like their school

• The health of the economy

• How many times families visit the grocery store per week

What is a recession?

• an increase in the economy 

• a decline in economic activity for two quarters (6 months)

• depression

• 1 month of increase in GDP

Which of the following best describes the Consumer Price Index (CPI)?

• The average price of a basket of goods and services purchased by households over time.

• The total value of all goods produced in a country.

• The total amount of money in circulation in an economy.

• The percentage of unemployed people in the labor force.

What typically happens to the unemployment rate during a recession?

• It remains unchanged

• It becomes zero

• It increases

• It decreases significantly