Unit 4 Quiz

Commodity money is

• Money that has intrinsic value based upon the material it is made from.

• Paper money that is backed by something tangible.

• Money that has value because a government declares it to be so and the citizens accept that it has worth.

Fiat money is

• Money that has intrinsic value based upon the material it is made from.

• Paper money that is backed by something tangible.

• Money that has value because a government declares it to be so and the citizens accept that it has worth.

Representative money is

• Money that has intrinsic value based upon the material it is made from.

• Currency that is backed by something tangible.

• Money that has value because a government declares it to be so and the citizens accept that it has worth.

Saving your money for a year to make a large purchase represents money as a

• Medium of exchange

• Store of value

• Standard of value

Comparing the cost of different flights is an example of using money as a

• Medium of exchange

• Store of value

• Standard of value

Using dollars to buy groceries is an example of

• Medium of exchange

• Store of value

• Standard of value

A car is an example of a

• durable good

• nondurable good

• way to get stoked

• real good

Nominal GDP is

• Measurement of GDP with inflation included in the amount

• Measurement of GDP controlled for inflation

• Exports minus Imports

• Always lower than real GDP

GDP is (select all that apply)

• Value of all goods and services produced within a nation in a given time period (typically a year)

• C+I+G+NX

• A measure of a country's total output

Expansionary phase is when

• Low unemployment,

  Inflationary,

  GDP increasing

• Demand and GDP no longer decreasing,

  Employment and production stabilize

• Demand and GDP slows

• Demand and GDP decreasing,

  unemployment increases,

  may be deflation