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Economics unit 5

Total questions: 26

Worksheet time: 12mins

Name
Class
Date
1.

GDP known by the amount of money spent by consumers yearly is

a)

Exports

b)

Consumption

c)

Investments

2.

GDP is the measure of

a)

all goods produced and all exports

b)

the value of all intermediate goods and services

c)

the value of all final goods and services produced in a country annually

3.

What is the desired unemployment rate inthe United States?

a)

4-6%

b)

0-3%

c)

5-8%

4.

What is a general increase in in prices called?

a)

Quantity theory

b)

Consumers price Index

c)

Inflation

5.

An example of a durable good would be

a)

Food

b)

A car

c)

Toilet paper

6.

GDP equal what

a)

G + X + W + Q

b)

C + I + M + L

c)

C + I + G + X

7.

A period of expansion followed by a period of contraction is

a)

the business cycle

b)

GDP

c)

Life cycle

8.

When demand for goods and services exceed the supply and inflation occurs

a)

Cost -push theory

b)

Inflation theory

c)

Demand-pull theory

9.

Nominal GDP is

a)

GDP adjsted for inflation

b)

GDP to compare the nations economy from year to year

c)

GDP not adjusted for inflation

10.

Which of these is NOT part of GDP?

a)

Consumption

b)

Innovation

c)

Exports

11.

The cost-push theory says what is the reason for inflation?

a)

Producers raise their prices to meet increased costs

b)

Too much money is in circulation

c)

Demands for goods and services exceeds supply

12.

A stay at home mom not looking for a job is

a)

unemployed

b)

not in the workforce

c)

underemployed

13.

GDP per capita is

a)

GDP per person

b)

A nations GDP divided by the population

c)

All of the above

14.

If I worked for a company that made VHS tapes, and DVD, Blu Ray discs and movie streaming are more in demand, and my skills do not match what is needed so I am laid off, I am

a)

Structurally unemployed

b)

Not in the workforce

c)

Seasonlly unemployed

15.

What measures prices of specific goods over time to analyze inflation rates?

a)

Seasonal unemployment

b)

Inflation

c)

Consumer Price Index (CPI)

16.

The difference between cyclical unemployment and structural unemployment is

a)

Cyclical unemployemnt rises and falls during expansion and contraction, structural unemployment occurs when worker skills do no match job demands

b)

Cyclical is when a worker quits and structural is when common work is outdoor work

c)

Structural happens when the worker quits and doesn't plan to look for a new job and cyclical is whne the workers skills do not match job demands

17.

This states that inflation occurs when there is too much moneu in circulation

a)

Seasonal unemployment

b)

Real GDP

c)

Quanitiy Theory

18.

Real GDP is

a)

when the gross domestic product is adjusted for inflation

b)

when Inflation happens

c)

when Consumer price index happens

19.

An industry shuts down for a season and the workers are without a job

a)

Inflation

b)

Real GDP

c)

Seasonal unemployment

20.

All are examples of durable goods EXCEPT:

a)

TV

b)

Oven

c)

Soap

21.

What is the lowest point of a business cycle?

a)

Trough

b)

Expansion

c)

Peak

22.

The investment part of GDP is

a)

the value of goods and services prodeced by consumers

b)

the value of a nations exports

c)

the amnount spent by businesses on productiove resources

23.

What is NOT included in the GDP?

a)

Used goods

b)

Government expenses

c)

Intermediate goods

24.

When the economy moves from a trough to a peak is called

a)

Contraction

b)

Expansion

c)

Recession

25.

During economic expansion the nations economy is

a)

Failing

b)

Getting smaller

c)

Growing

26.

For 2 bonus points describe in at least 3 sentences what happened during the class auction.

a)

What happened during round 1 and 2 and why did that happen?

b)

What was this an example of?

c)

Which theory did this illustate and why?