Econ- 5.1 Part 1 Formative Assessment Option 2

Click each of the following on which Macroeconomics focuses.

• Unemployment

• The market for oranges

• The Business Cycle

• The price of inputs to produce microprocessors.

• Fiscal Policy

Which of the following components of the expenditures approach to finding GDP is the fastest growing?

• Consumption

• Investment

• Government Spending

• Net Exports

Which component of the expenditures approach to finding GDP is consistently negative for the US?

Rate of Inflation is used to measure which macroeconomic goal?

• Full Employment

• Price Stability

• Economic Growth

Economic Growth is measured by with economic indicator?

• Rate of Inflation

• Real GDP Growth Rate

• Unemployment Rate

• Fiscal Policy

Identify which of the following choices is the correct category for the following scenario:

Scenario: College tuition paid for the first year of college.

• Counted under Consumption

• Not Counted b/c it is a Used Good

• Not Counted b/c it is an intermediate Good

• Counted under Investment

Identify which of the following choices is the correct category for the following scenario:

Scenario: You buy 100 shares of Amazon stock.

• Not Counted b/c it is a Financial Transactions

• Not Counted b/c it is a Used Good

• Counted under Investment

• Counted under Consumption

Identify which of the following choices is the correct category for the following scenario:

Scenario: The production of 100 TV’s in Tennessee but not sold.

• Not Counted b/c it is a Financial Transaction

• Counted under Investment

• Counted under Consumption

• Counted under Net Exports

Identify which of the following choices is the correct category for the following scenario:

Scenario: The city of Chanhassen buys new books for the city library.

• Counted under Investment

• Counted under Government Spending

• Not Counted b/c these are used goods

• Not Counted b/c this is considered a Transfer Payment

Identify which of the following choices is the correct category for the following scenario:

Scenario:  Japan buys 10,000 tons of corn from Iowa.

• Counted under Net Exports

• Not Counted b/c this is an Import

• Counted under Consumption

• Not Counted b/c this is considered Underground Production