Understanding Economic Indicators Quiz

What is the definition of an Economic Indicator?

• A statistic used to gauge the health of an economy.

• A tool used to predict weather patterns.

• A method for calculating taxes.

• A system for managing public transportation.

What does GDP stand for?

• Gross Domestic Product

• General Domestic Policy

• Global Development Plan

• Government Debt Payment

Which of the following is NOT a phase of the Business Cycle?

• Peak

• Contraction

• Inflation

• Recovery

What is the acceptable rate of unemployment?

• 1-2%

• 3-5%

• 6-8%

• 9-10%

Which of the following is a natural cause of unemployment?

• Cyclical

• Seasonal

• Frictional

• All of the above

What is the definition of Minimum Wage?

• The lowest amount an employer can legally pay an employee.

• The average salary of a worker in a country.

• The highest salary an employee can earn.

• The amount of money needed to live comfortably.

Which of the following is a pro of Minimum Wage?

• It increases unemployment.

• It reduces poverty.

• It decreases inflation.

• It lowers productivity.

Which of the following is a con of Minimum Wage?

• It increases consumer spending.

• It can lead to job losses and inflation.

• It improves living standards.

• It reduces income inequality.

What is the definition of Inflation?

• A decrease in the general price level of goods and services.

• An increase in the general price level of goods and services.

• A measure of economic growth.

• A type of unemployment.

What is the acceptable rate of inflation?

• 0-1%

• 2-3%

• 4-5%

• 6-7%