Measuring the Economy Part 1

What is the primary purpose of economic indicators?

• To predict future stock market trends

• To measure the health of an economy

• To determine tax rates

• To calculate the national debt

What is hyperinflation?

• A slight increase in the price of goods and services

• A decrease in the price of goods and services

• An extreme and rapid rise in the price of goods and services

• A stable price level over time

Which of the following is NOT a component of GDP?

• Household consumption (C)

• Business investment (I)

• Government purchases (G)

• Savings (S)

What is the difference between nominal GDP and real GDP?

• Nominal GDP is adjusted for inflation, real GDP is not

• Real GDP is adjusted for inflation, nominal GDP is not

• Both are adjusted for inflation

• Neither is adjusted for inflation

What does per capita GDP measure?

• Total GDP of a nation

• Average economic output per person

• Total exports of a nation

• Total imports of a nation

Which type of unemployment occurs when workers are seeking their first job or transitioning between jobs?

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

• Cyclical unemployment

What is an example of structural unemployment?

• A graduate changing from a college job to a career

• Self-checkout counters reducing the need for cashiers

• Ski instructors at mountain resorts during the winter

• Workers laid off during a recession

Which type of unemployment is linked to economic decline in the business cycle?

• Frictional unemployment

• Structural unemployment

• Seasonal unemployment

• Cyclical unemployment

What are discouraged workers?

• Workers who are employed part-time

• Unemployed workers who have stopped looking for work

• Workers who are overqualified for their jobs

• Workers who are seeking their first job

What is the informal economy?

• A sector of the economy that is officially recorded and taxed

• A sector of the economy operating without government regulation

• A sector of the economy that includes only government jobs

• A sector of the economy that includes only multinational corporations