National Economic Performance Unit Test Review

1. _______________ is when there is an increase in the market value of goods and services produced by an economy over time

• Gross Domestic Product
• Economic Growth
• Unemployment
• Inflation

2. _______________ is when there is a sustained increase in the general price level of goods and services in an economy over a period of time.

• Gross Domestic Product
• Economic Growth
• Unemployment
• Inflation

3. _______________ is when People who do not have a job, have actively looked for work in the past four weeks, and are currently available for work. Also, people who were temporarily laid off and were waiting to be called back to that job are included.

• Gross Domestic Product
• Economic Growth
• Unemployment
• Inflation

4. _______________ is when the total value of goods produced and services provided in a country during one year.

• Gross Domestic Product
• Economic Growth
• Unemployment
• Inflation

5. When an automobile factory emits pollution into a river is called ______________.

• A positive externality
• A negative externality
• A neutral externality
• A positive consequence

6. When a city builds a subway stop to a subdivision that has not been completed yet is called __________________.

• A positive externality
• A negative externality
• A neutral externality
• A Negative Consequence

7. What causes demand-pull inflation?

• Decrease in consumer spending
• Increase in production costs
• Demand for goods and services surpasses their supply
• Decrease in the money supply

8. What impact does inflation have on purchasing power?

• Only affects the wealthy
• Erodes the purchasing power of money
• Has no impact on purchasing power
• Increases the purchasing power of money

9. What role do banks play between savers and borrowers?

• Risk Management
• Payment Processing
• Intermediation
• Credit Creation

10. Which of the following services is NOT provided by financial institutions?

• Manufacturing goods
• Electronic funds transfers
• Credit card processing
• Insurance