Economics Quiz

What is the definition of the Business Cycle in economics?

• The rate of increase in prices over a given period of time

• A cycle or series of cycles of economic expansion and contraction

• A fall in the overall level of prices in an economy

• A family of indexes that measure price change experienced by urban consumers

What does Gross Domestic Product (GDP) measure?

• The rate of increase in prices over a given period of time

• The overall level of prices in an economy

• The monetary value of final goods and services produced in a country in a given period of time

• The measure of price change experienced by urban consumers

What is inflation?

• A cycle or series of cycles of economic expansion and contraction

• The monetary value of final goods and services produced in a country

• A fall in the overall level of prices in an economy

• The rate of increase in prices over a given period of time

Deflation is best described as:

• The rate of increase in prices over a given period of time

• A cycle or series of cycles of economic expansion and contraction

• A fall in the overall level of prices in an economy and an increase in the purchasing power of the currency

• A family of indexes that measure price change experienced by urban consumers

What does the Consumer Price Index (CPI) represent?

• The rate of increase in prices over a given period of time

• The monetary value of final goods and services produced in a country

• A fall in the overall level of prices in an economy

• A family of indexes that measure price change experienced by urban consumers

What does the Unemployment Rate measure?

• The percentage of people in the labor force who are employed.

• The share of workers in the labor force who do not currently have a job but are actively looking for work.

• The total number of people in the labor force.

• The percentage of people in the labor force who are not looking for work.

What is a Recession?

• A short-term economic downturn that affects only a few industries.

• A significant, widespread, and prolonged downturn in economic activity.

• A rapid increase in economic growth and production.

• A temporary increase in unemployment rates.

Which of the following is a symptom of a Depression in economic terms?

• A moderate fall in economic growth.

• A sharp rise in stock market prices.

• Dramatic and sustained downturn in economic activity, with symptoms including a sharp fall in economic growth, employment, and production.

• A temporary increase in consumer spending.