Understanding Economic Indicators Quiz

What does GDP stand for in economics?

• Gross Domestic Product

• General Domestic Product

• Gross Development Product

• General Development Product

Which of the following is a common measure of inflation?

• Consumer Price Index (CPI)

• Gross Domestic Product (GDP)

• Unemployment Rate

• Interest Rate

If the unemployment rate in a country is 5%, what does this indicate about the labor force?

• 5% of the labor force is employed

• 5% of the labor force is unemployed

• 95% of the labor force is unemployed

• 95% of the labor force is employed

Which of the following scenarios is most likely to cause inflation?

• A decrease in consumer demand

• An increase in production costs

• A decrease in the money supply

• An increase in unemployment

What is the primary purpose of measuring GDP?

• To assess the economic performance of a country

• To determine the unemployment rate

• To calculate inflation rates

• To measure population growth

Which of the following is NOT a component of GDP?

• Consumer spending

• Government spending

• Net exports

• Unemployment benefits

If a country's GDP is growing, what can be inferred about its economy?

• The economy is shrinking

• The economy is stagnant

• The economy is expanding

• The economy is in recession

Analyze how a high unemployment rate might affect consumer spending and economic growth.

• It increases consumer spending and boosts economic growth

• It decreases consumer spending and slows economic growth

• It has no effect on consumer spending or economic growth

• It increases consumer spending but slows economic growth

What is the relationship between inflation and purchasing power?

• As inflation increases, purchasing power increases

• As inflation increases, purchasing power decreases

• Inflation has no effect on purchasing power

• Inflation and purchasing power are unrelated

Which of the following best describes the term "unemployment rate"?

• The percentage of the total population that is unemployed

• The percentage of the labor force that is unemployed

• The percentage of employed individuals in the labor force

• The percentage of the total population that is employed