Economic Terms Quiz

Match each economic term with its appropriate definition:
Inflation

• The percentage of the labor force that is not employed but is actively seeking work.

• A combination of economic downturn and high inflation, causing high unemployment rates.

• An increase in the overall price level of goods and services produced in an economy.

• The market value of all final goods and services produced within a country during a given period of time.

Match each economic term with its appropriate definition:
GDP

• The percentage of the labor force that is not employed but is actively seeking work.

• A combination of economic downturn and high inflation, causing high unemployment rates.

• An increase in the overall price level of goods and services produced in an economy.

• The market value of all final goods and services produced within a country during a given period of time.

Match each economic term with its appropriate definition:
Unemployment Rate

• The percentage of the labor force that is not employed but is actively seeking work.

• A combination of economic downturn and high inflation, causing high unemployment rates.

• An increase in the overall price level of goods and services produced in an economy.

• The market value of all final goods and services produced within a country during a given period of time.

Match each economic term with its appropriate definition:
Stagflation

• The percentage of the labor force that is not employed but is actively seeking work.

• A combination of economic downturn and high inflation, causing high unemployment rates.

• An increase in the overall price level of goods and services produced in an economy.

• The market value of all final goods and services produced within a country during a given period of time.

Match each economic term with its appropriate definition:
Multiplier Effect

• The percentage of the labor force that is not employed but is actively seeking work.

• A combination of economic downturn and high inflation, causing high unemployment rates.

• An increase in the overall price level of goods and services produced in an economy.

• The market value of all final goods and services produced within a country during a given period of time.

• A ripple effect in which a change in spending by one person leads to additional changes in spending by another.

Which of the following is NOT a component of calculating GDP?

• Household Consumption

• Business Investments

• Foreign Investments

• Net Exports

Which type of unemployment would include a farmer who is not employed during the winter?

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

• Cyclical Unemployment

Which type of unemployment occurs when the economy fluctuates?

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

• Cyclical Unemployment

Which of the following is NOT part of the business cycle?

• Contraction

• Peak

• Expansion

• Downturn

Who created the idea of Keynesian economics?

• Richard Mayweather Keynes

• John Maynard Keynes

• David Marcus Keynes

• Joel Maxius Keynes