Economics Quiz

What does the Business Cycle show?

• The total value of all final goods and services produced by a country

• The degree of wealth and material comfort available to a person

• Periods of growth and decline in the economy

• The rate at which prices increase over time

What is the definition of Standard of Living?

• The rate at which prices increase over time

• The degree of wealth and material comfort available to a person or community

• A measure of how much prices have changed over time

• The percentage of people in the labor force who are unemployed

What does Gross Domestic Product (GDP) measure?

• The rate at which prices increase over time

• The total value of all final goods and services produced by a country in one calendar year

• The degree of wealth and material comfort available to a person

• The percentage of people in the labor force who are unemployed

What is Inflation?

• A measure of how much prices have changed over time

• The degree of wealth and material comfort available to a person

• The rate at which prices increase over a period of time

• The total value of all final goods and services produced by a country

What does the Consumer Price Index (CPI) measure?

• The total value of all final goods and services produced by a country

• The degree of wealth and material comfort available to a person

• How much prices have changed over time for a basket of goods and services

• The percentage of people in the labor force who are unemployed

What does the Unemployment Rate indicate?

• The total value of all final goods and services produced by a country

• The degree of wealth and material comfort available to a person

• The percentage of people in the labor force who are unemployed but looking for work

• The rate at which prices increase over time

What is the phase of the business cycle when the economy experiences growth over a period of time?

• Peak Period

• Contraction Period

• Expansion Period

• Trough

During which period does the economy reach its maximum productive output and growth rate?

• Trough

• Peak Period

• Recession

• Expansion Period

What is characterized by a decrease in economic output during a business cycle?

• Expansion Period

• Peak Period

• Contraction Period

• Trough

What term describes a low point in the business cycle?

• Recession

• Expansion Period

• Trough

• Peak Period