Measuring the Economy

What does CPI stand for in economic terms?

• Consumer Price Index

• Consumer Product Index

• Consumer Price Information

• Consumer Product Information

What is an example of a good that is not counted in GDP because it is used?

• New car

• Old clothes

• Fresh food

• New furniture

GDP is often criticized for not measuring which of the following?

• National income

• Quality of life

• Total exports

• Government spending

Which of the following is not true about GDP?

• A) It measures the total value of goods and services

• B) It accounts for environmental costs

• C) It is used to compare economic performance

• D) It does not include informal economy.

What is the relationship between scarcity and demand?

• Scarcity decreases demand

• Scarcity increases demand

• Scarcity has no effect on demand

• Scarcity eliminates demand

What is a common driver of uneconomic growth?

• Sustainable practices

• Overconsumption

• Environmental regulations

• Community engagement

Which policy can help counteract uneconomic growth?

• Deregulation of industries

• Investment in fossil fuels

• Strengthening environmental laws

• Reducing taxes on corporations

Why is GDP considered insufficient for measuring standard of living?

• It includes happiness

• It focuses on production

• It measures well-being

• It accounts for all metrics.

While "old school" economists tend to focus on GDP, "new school" economists who recognize the reality of scarcity and trade-offs know in addition to GDP, ____________ should also be taken into consideration.

• efficiency

• money

• climate

• business cycles

Which of the following do countries that have higher GDPs tend to have in common? (mark ALL that apply)

• high productivity

• stable government

• higher levels of human capital

• higher levels of tools and machines

• centrally planned economies