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WorksheetsPearson ch 11 economic performance
Total questions: 28
Worksheet time: 16mins
Name
Class
Date
1.
Within the circular flow, there are two markets. These markets are the
a)
market for firms to sell goods and the market for firms to sell services.
b)
goods market and the factors of production market.
c)
market for households to buy goods and the market for households to buy services.
d)
market for the government and the market for everyone else.
2.
The circular flow model shows that goods and services flow from
a)
businesses to households.
b)
households to business.
c)
the resource market to businesses.
d)
the product market to businesses.
3.
In the circular flow model, which of the following owns the factors of production?
a)
government
b)
only households
c)
only businesses
d)
both businesses and households
4.
In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production?
a)
finished goods and services
b)
wages, rent, interest, and profit
c)
transfer payments from government
d)
firm's profit incentives
5.
What is the money that remains after the cost of production have been paid?
a)
Profit
b)
Bonus
c)
Salary
d)
Output
6.
declining unemployment rate, prices slowly rise
a)
Expansion
b)
Peak
c)
Contraction
d)
Trough
7.
Unemployment is highest during the
a)
Expansion
b)
Peak
c)
Contraction
d)
Trough
8.
Prices are at their highest point
a)
Expansion
b)
Peak
c)
Contraction
d)
Trough
9.
Investment is at its lowest point
a)
Expansion
b)
Peak
c)
Contraction
d)
Trough
10.
Prices are lowered to clear inventory (Surplus or stored stock)
a)
Expansion
b)
Peak
c)
Contraction
d)
Trough
11.
If Real GDP is $300 million and the population is 10 million, what is the Real GDP per capita?
a)
$3,000
b)
$300
c)
$30
d)
$5
12.
The dollar value of all final goods and services (output) produced within a country's borders in a given year.
a)
total ouput
b)
Gross Domestic Product
c)
national income
d)
net domestic product
13.
When a company buys new computers for their business, what part of the GDP equation does this count as?
a)
Consumption
b)
Investments
c)
Imports
d)
Exports
14.
This is the series of periods of expanding and contracting economic activity
a)
Gross Domestic Product
b)
Business cycle
c)
National Income Accounting
d)
Microeconomics
15.
How do we measure economic growth?
a)
Increases in the price level, as indicated by the GDP chain price index
b)
Increases in fictional GDP
c)
Increases in real GDP
d)
Increases in the labor force
16.
If GDP falls for at least 2 Quarters, it is called.
a)
Expansion
b)
Recession
c)
Clumsy
d)
Frictional
17.
Which is NOT included in Gross Domestic Product (GDP) as a measure of the economy?
a)
Final goods and services
b)
Work done at home such as house renovations
c)
Dollars
d)
Government spending
18.
Which best describes GDP?
a)
Monetary value of all final goods and services produced within a country’s borders in a year
b)
Personal income and expenses each day
c)
It is a cycle of things and stuff
d)
Products shipped from one country to another for purchase
19.
GDP is an important economic measurement because it
a)
provides valuable data on unemployment rates.
b)
provides valuable data on unemployment rates.
c)
measures all final goods and services produced by a country.
d)
includes all economic activity, including financial transactions and purchases of used goods.
20.
What is the formula for calculating GDP if using the expenditure approach?
a)
consumption + investment + government spending + net exports
b)
wages + interest + rent + profit
c)
add up all values added to the good
d)
none of these
21.
What is considered "interest" in the GDP income approach?
a)
worker's wages
b)
money paid for the use of land
c)
the remaining income after all expenses have been paid out
d)
money paid to people that lend money to the business
22.
What is the difference between Nominal and Real GDP?
a)
Nominal GDP includes imports from other countries, Real GDP does not
b)
Real GDP is adjusted for inflation, nominal is not
c)
Real GDP represents the current year, nominal represents a base year
23.
Which is an example of investment in human capital?
a)
trucks
b)
factories
c)
education
d)
highways
24.
C 500 G 200 I -100 X 200 M 300
GDP =
GDP =
a)
1400
b)
1000
c)
1300
d)
500
25.
if leakages are greater than injections in the circular flow model
a)
unemployment and inflation will be high
b)
unemployment will be high and inflation low
c)
inflation and economic growth will be slow
d)
none of these options
26.
which are the leakages into the circular flow model
a)
CGI
b)
STM
c)
SIX
d)
TMG
27.
which are the injections into the circular flow
a)
TIX
b)
CGX
c)
IGX
d)
CGM
28.
which set of economic indicators best describes the Australian economy now
a)
GDP. 0.1. rising UE. 5.2 falling CPI. 3.7. rising
b)
GDP. 3.2 rising UE. 3.5 falling CPI. 5.6 falling
c)
GDP. 1.1. falling UE. 4.2 rising CPI 3.7 falling
d)
GDP. 6 falling UE. 6 falling CPI. 4.3 falling
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