WorksheetsEcon Unit 3 Review
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
The sale of a used car is not counted in GDP because
a)
The price is too low
b)
No new wealth is created
c)
The sale is not recorded
d)
Its a private transaction
2.
A car assembled at an American plant in Canada is
a)
American made
b)
a joint venture
c)
excluded from GDP
d)
Included at full cost in GDP
3.
The ______ is used to keep track of price changes that domestic producers receive for their output
a)
Domestic price index
b)
producer price index
c)
implicit GDP price deflator
d)
Consumer price index
4.
A person who mows his or her own yard takes part in
a)
Gross private domestic investment
b)
Stimulating GNP
c)
the underground economy
d)
Excluded from GDP
5.
A fairly satisfactory gauge that measures economic growth in the short term is
a)
Nominal GDP
b)
The growth triangle
c)
Real GDP
d)
The capital to labor ratio
6.
A period of recovery from a recession is called
a)
inflation
b)
Depression
c)
Deflation
d)
Expansion
7.
Economists prefer to use _______to measure long-term economic growth
a)
Real GDP per capita
b)
Real GDP
c)
Real GNP
d)
Real GNP per capita
8.
The quality of life based on possession of necessities and luxuries is described as one’s
a)
Lifestyle
b)
Standard of Living
c)
Conspicuous Consumption
d)
Dependency Ratio
9.
One cause of the Great Depression was
a)
Tight federal money policy
b)
Over-expansion of credit
c)
High unemployment levels
d)
Too much government regulation
10.
The cost-push theory places responsibility for inflation on the
a)
Producers
b)
Consumers
c)
Government
d)
Workers
11.
During a period of inflation, people on fixed incomes
a)
Find their money buys more
b)
Suffer from a decline in purchasing power
c)
Are able to afford more entertainment
d)
Find no difference in spending power
12.
The purpose of the market basket is to
a)
Regulate the stock exchange
b)
Regulate national grain surpluses
c)
Keep track of prices of consumer items
d)
Act as a price deflator
13.
The consumer sector of the economy is composed of
a)
Large corporations
b)
Foreign investors
c)
all levels of the government
d)
households
14.
To arrive at the real GDP per capita figure
a)
Multiply the real GDP by the population
b)
Divide the real GDP by the population
c)
Add the real GDP to the population
d)
Subtract the real GDP from the population
15.
The beginning of the Great Depression in 1929 was marked by the A. End of World War I C. Stock Market crash B. Dust bowl storms on the Great Plains D. Election of Herbert Hoover
a)
End of World War I
b)
Stock Market crash
c)
Dust bowl storms on the Great Plains
d)
Election of Herbert Hoover
16.
The immediate effect of inflation is the
a)
Increased value of money
b)
Greater spending by all income groups
c)
Prosperity of people on fixed incomes
d)
Decline in the purchasing power of the dollar
17.
A general decline in the level of prices is called
a)
Inflation
b)
Deflation
c)
Stagnation
d)
Hyperinflation
18.
Economists like to convert statistical series to real terms (read GDP, for example) because the adjustment
a)
is easy to do
b)
Removes the problem of unemployment
c)
Removes the distortions caused by inflation
d)
Makes the statistical series seem to grow faster
19.
A rising GDP does not always signal
a)
An improving quality of life
b)
Progress in technology
c)
Declining output
d)
Rising input
20.
When calculating GDP, the foreign sector of the economy represents the
a)
Dollar value of exports only
b)
Difference between the dollar value of exports and imports
c)
Dollar value of imports only
d)
Sum total of value of exports and imports
100 %
