Economics Quiz

What does the Business Cycle show?

• The total value of goods produced in a year

• Periods of growth and decline in the economy

• The rate of unemployment

• The degree of wealth in a community

What does Gross Domestic Product (GDP) measure?

• The rate of inflation

• The total value of all final goods and services produced in a year

• The percentage of unemployed people

• The change in consumer prices

What is Inflation?

• A measure of price changes over time

• The degree of wealth in a community

• The rate at which prices increase over time

• The total value of goods produced in a year

What does the Unemployment Rate indicate?

• The total value of goods produced in a year

• The percentage of people unemployed but looking for work

• The rate at which prices increase

• The degree of wealth in a community

Which term describes the highest point in a business cycle, where maximum employment is reached?

• Trough

• Peak Period

• Recession

• Expansion Period

How is a recession generally identified?

• Increase in GDP over two quarters

• Fall in GDP in two successive quarters

• Increase in trade and industrial activity

• Maximum productive output

What is inflation defined as in the context of the Consumer Price Index?

• The sustained increase in the general level of prices

• The decrease in employment rates

• The increase in stock market values

• The reduction in government spending

What characterizes a bull market?

• Stock prices fall, unemployment rises, growth declines

• Economic growth, high profits, low unemployment, high stock prices

• High inflation, low interest rates, stable stock prices

• Decreasing GDP, increasing interest rates, stable unemployment

What are capital gains?

• A share of a corporation's profits shared with shareholders

• Gains earned when you sell a stock above the original price

• A type of bond that pays interest over time

• A fee paid to brokers for trading stocks