Economics 2 Final Exam Quiz TIU

What is the primary focus of macroeconomics?

• Market structures

• Overall economic performance

• Individual firm decisions

• Consumer behavior

What does GDP stand for?

• General Development Product

• Gross Development Plan

• General Domestic Price

• Gross Domestic Product

Which of the following is a type of unemployment?

• Cyclical unemployment

• Seasonal unemployment

• Temporary unemployment

• Voluntary unemployment

What does the Rule of 70 help to determine?

• Unemployment rates

• Interest rates

• Doubling time of GDP growth

• Inflation rates

What is the formula for calculating the unemployment rate?

• Labor force / Total population

• Employed workers / Total population

• Unemployed workers / Labor force

• Unemployed workers / Total population

What is the primary role of fiscal policy?

• Regulate banks

• Manage interest rates

• Control inflation

• Adjust government spending and taxes

What does the term 'crowding out' refer to?

• Increased government spending reducing private investment

• Increased private investment reducing government spending

• Private savings leading to higher government spending

• Government borrowing leading to lower interest rates

What is the definition of money?

• Only cash in circulation

• Any asset that can be used to purchase goods and services

• A type of financial asset

• A government-issued currency

What is the primary function of the Federal Reserve?

• Manage government spending

• Control the monetary base

• Regulate the stock market

• Set tax rates

What is the definition of inflation?

• A decrease in overall price levels

• An increase in overall price levels

• A stable price level

• A measure of economic growth