Economic Concepts Quiz

What is the Rule of 70? It tells you how many years you will double given a certain growth rate.

• It is a method to calculate the doubling time of an investment.

• It is a rule to determine the interest rate of a loan.

• It is a guideline for calculating depreciation.

• It is a formula for estimating population growth.

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSF.LE.A.3

Which of the following best describes inflation and its two main types?

• Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The two main types are demand-pull inflation and cost-push inflation.

• Inflation is the decrease in the general price level of goods and services. The two main types are deflation and hyperinflation.

• Inflation is the increase in the supply of money in the economy. The two main types are monetary inflation and fiscal inflation.

• Inflation is the increase in the unemployment rate. The two main types are structural inflation and cyclical inflation.

Which of the following is a characteristic of the expansion phase in the business cycle?

• Increasing employment

• Decreasing GDP

• High inflation

• Rising interest rates

What are the 3 types of unemployment we talked about?

• Frictional, Structural, Cyclical

• Seasonal, Frictional, Cyclical

• Structural, Cyclical, Seasonal

• Frictional, Structural, Seasonal

What is GDP, what is included in GDP, what conditions must be met for a good or service to be in the current GDP calculation? Can you give examples?

• GDP includes all goods and services produced within a country.

• GDP only includes goods and services produced by citizens of a country.

• GDP includes only exported goods and services.

• GDP includes goods and services produced by foreign companies within the country.

What are the components of the expenditure model for GDP?

• Consumption, Investment, Government Spending, Net Exports

• Consumption, Savings, Government Spending, Net Imports

• Investment, Savings, Government Revenue, Net Exports

• Consumption, Investment, Government Revenue, Net Imports

Which of the following is included in GDP?

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

• The value of intermediate goods

• The value of used goods

• The value of illegal goods

How do we show economic growth on the Production Possibilities Curve?

• By shifting the curve outward

• By shifting the curve inward

• By moving along the curve

• By keeping the curve unchanged

Tags

CCSS.HSA.CED.A.2

CCSS.HSA.REI.D.10

How has Free trade helped economies grow?

• By increasing market access and competition

• By reducing the need for innovation

• By limiting foreign investments

• By increasing tariffs and trade barriers

Nominal vs. Real GDP: Explain the difference.

• Nominal GDP is adjusted for inflation, while Real GDP is not.

• Real GDP is adjusted for inflation, while Nominal GDP is not.

• Both Nominal and Real GDP are adjusted for inflation.

• Neither Nominal nor Real GDP is adjusted for inflation.