Economics Quiz 3 Review

Which of the following is a characteristic of fiat money?

• It has intrinsic value.

• It is backed by physical commodities.

• It is authorized as legal tender by the government.

• It can only be in the form of precious metals.

Which of the following is NOT a function of money?

• Medium of exchange

• Store of value

• Unit of account

• Producer of goods

Who controls the monetary policy in the United States?

• Congress

• The President

• The Treasury Department

• The Federal Reserve

Which of the following is a key function of the Federal Reserve?

• To ensure national defense

• To manage the country's fiscal policy

• To oversee and regulate banks and financial institutions

• To conduct national elections

Which of the following is NOT a duty of the Federal Reserve?

• Regulating banks

• Issuing currency

• collecting taxes

• Conducting monetary policy

Ideally, a country should export more goods and services than it imports:

• True

• False

Which of the following is an example of an import?

• A country exporting textiles to its neighboring countries

• Japan selling electronics to European countries

• USA importing wines from France

• Manufacturers in India exporting spices worldwide

Gross domestic product (GDP) measures:

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

• The total value of all goods and services produced by a country's citizens abroad

• The total value of all imports and exports of a country

• The total value of all goods and services consumed within a country

What does Gross Domestic Product (GDP) measure?

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

• The sum of personal consumption expenditures, business investments, and government spending

• The total market value of all final goods and services made within the borders of a nation in a year

• All of the above

Structural unemployment occurs when:

• Workers lose their jobs due to a recession

• Workers lack the necessary skills for available jobs

• Workers voluntarily leave their jobs

• Workers are temporarily laid off