EPF - Module 4: Measuring Economic Performance

What does GDP stand for in economic terms?

• Gross Domestic Product

• General Domestic Product

• Gross Development Product

• General Development Product

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DOK Level 1: Recall

Which of the following is a measure of inflation?

• Consumer Price Index (CPI)

• Gross National Product (GNP)

• Unemployment Rate

• Balance of Trade

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DOK Level 1: Recall

Explain how the Consumer Price Index (CPI) is used to measure inflation.

• It measures the average change in prices over time that consumers pay for a basket of goods and services.

• It calculates the total value of goods and services produced within a country.

• It assesses the total income earned by a nation's residents.

• It evaluates the balance of trade between two countries.

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DOK Level 2: Skill/Concept

How does an increase in GDP affect the economy?

• It indicates economic growth and can lead to higher employment rates.

• It suggests a decrease in national income.

• It results in a higher unemployment rate.

• It leads to a reduction in consumer spending.

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DOK Level 2: Skill/Concept

Describe the relationship between GDP and the standard of living.

• A higher GDP generally indicates a higher standard of living, but it does not account for income distribution or non-market transactions.

• A higher GDP always results in a lower standard of living.

• GDP and standard of living are unrelated.

• A lower GDP always indicates a higher standard of living.

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DOK Level 2: Skill/Concept

Analyze the impact of a high unemployment rate on an economy.

• It can lead to decreased consumer spending and lower economic growth.

• It results in increased government revenue from taxes.

• It causes inflation to rise significantly.

• It leads to a surplus in the balance of trade.

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DOK Level 3: Strategic Thinking

What strategic steps can a government take to reduce inflation?

• Increase interest rates and reduce government spending.

• Lower interest rates and increase government spending.

• Increase taxes and increase government spending.

• Decrease taxes and decrease government spending.

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DOK Level 3: Strategic Thinking

How does the unemployment rate affect consumer confidence?

• A high unemployment rate generally decreases consumer confidence, leading to reduced spending.

• A high unemployment rate increases consumer confidence, leading to increased spending.

• The unemployment rate has no effect on consumer confidence.

• A low unemployment rate decreases consumer confidence.

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DOK Level 2: Skill/Concept

A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.

• 10%

• 8.5%

• 7.5%

• 6%

An increasing unemployment rate is associated with a growing economy.

• True

• False