Economic Performance Quiz

Which economic indicator measures the total value of all the productivity in a country in one year?

• CPI

• GDP

• Inflation

• Unemployment

Consumer price index (CPI) measures

• periods of economic recession

• periods of economic growth

• changes in the price level over time

• the total value of goods and services that are produced

What is Inflation?

• Inflation is a decrease in the general level of prices

• Inflation is an increase in the general level of prices

• Inflation is a number that that compares prices in one year with prices with some earlier base year

How does inflation hurt lenders like banks?

• The purchasing power of money increases over time.

• The value of assets goes down.

• Banks lose profit on long-term loans.

• Banks make too much profit.

Which economic indicator is used to measure inflation?

• Nominal GDP

• Real GDP

• GDP

• CPI

What is the impact of inflation on the purchasing power of money?

• It increases the purchasing power.

• It decreases the purchasing power.

• It has no impact on the purchasing power.

• It fluctuates the purchasing power.

Which economic indicator is used to measure the unemployment rate?

• GDP

• CPI

• Unemployment Index

• Inflation Index

What does a rise in GDP indicate?

• Decrease in economic activity

• Increase in economic activity

• No change in economic activity

• Fluctuation in economic activity

__________ occurs in the economy when unemployment and inflation are both high.

• Hyperinflation

• Disinflation

• Deflation

• Stagflation

Unemployment due to over-qualification or part time employment

• Underemployment

• Full Employment

• Seasonal

• Globalization