Units 7 and 8 Quiz

What does GDP stand for?

• Gross Domestic Product

• Gross Domestic Profit

• Government Debt Percentage

• Global Development Plan

Which of the following is not a component of GDP?

• Secondhand goods

• Imports

• Consumer Spending

• Government Spending

What is the difference between nominal GDP and real GDP?

• Nominal GDP includes inflation, while real GDP does not

• Nominal GDP is adjusted for population growth, while real GDP is not

• Real GDP is adjusted for population growth, while nominal GDP is not

• Real GDP includes inflation, while nominal GDP does not

What does the GDP deflator measure?

• The amount of government debt in the economy

• The total value of goods and services produced in the economy

• The rate of inflation in the economy

• The level of unemployment in the economy

What is the main cause of cyclical unemployment?

• Technological advancements

• Economic recessions

• Changes in consumer preferences

• Mismatch between skills and job requirements

Which of the following is a type of unemployment caused by technological changes?

• Structural unemployment

• Seasonal unemployment

• Cyclical unemployment

• Frictional unemployment

What is the definition of discouraged workers?

• Workers who are actively seeking employment but are unable to find a job

• Workers who are unable to find a job and have given up looking

• Workers who are employed in jobs that are below their skill level

• Workers who are employed part-time but want to work full-time

What is the circular flow model in economics?

• A model that shows the flow of resources between households and firms

• A model that shows the flow of goods and services between households and firms

• A model that shows the flow of information between households and firms

• A model that shows the flow of money between households and firms

What is the formula for calculating unemployment rate?

• (Number of employed / Labor force) x 100

• (Number of discouraged workers / Labor force) x 100

• (Number of part-time workers / Labor force) x 100

• (Number of unemployed / Labor force) x 100

What is the business cycle?

• The cycle of economic growth and decline in the economy

• The cycle of starting and closing businesses in the economy

• The cycle of consumer spending in the economy

• The cycle of government intervention in the economy