WorksheetsQuiz #4
Total questions: 40
Worksheet time: 56mins
Name
Class
Date
1.
The formula for GDP is
a)
C+X+G+Y
b)
C-I-G-Xn
c)
C+I+G+NX
d)
I+G-Xn-Xi
2.
If one wanted to know whether there had been inflation or not, the BEST measure to observe would be the
a)
GDP
b)
Business cycle
c)
CPI
d)
National Dept
3.
What is demand pull inflation?
a)
a decrease in price due to a decrease in supply
b)
a rise in price level due to an increase in demand
c)
a decrease in price due to an increase in supply
4.
What is the size of the Labor Force?
Unemployed (Looking for job) = 20
Retired = 5 Prison = 2
School = 10 Employed = 180
Unemployed (not looking for job) = 20
Unemployed (Looking for job) = 20
Retired = 5 Prison = 2
School = 10 Employed = 180
Unemployed (not looking for job) = 20
a)
180
b)
200
c)
220
d)
237
5.
The Consumer Price Index (CPI) is best used to determine
a)
the Dow Jones Index.
b)
the rate of inflation.
c)
the unemployment rate.
d)
currency exchange rates.
6.
When Inflation occurs,
a)
Price decreases in the economy
b)
The purchasing power of money decreases in the economy
c)
The dollar appreciates on foreign exchange markets
d)
Basic necessities become cheaper
7.
In March 2018, Berrien Springs had a Labor Force of 5,200 and 700 were unemployed. Find the unemployment rate.
a)
7.42 %
b)
13.46 %
c)
44.9 %
d)
none of the above
8.
Jeff was replaced by a computer. He is experiencing what type of unemployment?
a)
Cyclical
b)
Structural
c)
Seasonal
d)
Frictional
9.
Sarah is a forty year old investment banker who was laid off six months ago. She decided to switch careers and has spent those six months figuring out what to do next instead of applying for jobs in the banking industry.
a)
Structurally Unemployed
b)
Employed
c)
Fictionally Unemployed
d)
Not a part of the labor force
10.
Jim lost his job as a stock broker during the recession in 2008. He was unable to find a new position until 2010. During 2008-2010 Jim experienced what kind of unemployment?
a)
Cyclical
b)
Structural
c)
Seasonal
d)
Frictional
11.
Hannah is a teacher who took two years off from teaching to earn her Ph.D. However, she is having a hard time re-entering the profession because all of the districts near her have instituted hiring freezes as a response to the recent economic downturn. Hannah is experiencing
a)
cyclical unemployment
b)
frictional unemployment
c)
structural unemployment
d)
seasonal unemployment
12.
Tom was fired for failing a drug test and has been in a rehab facility for drug addiction for 3 months
a)
employed
b)
unemployed
c)
labor force
d)
not in the labor force
13.
If the unemployment rate goes down, what will most likely happen to real GDP?
a)
goes up
b)
goes down
c)
it will have no effect
14.
The Unemployment Rate is defined as
a)
percentage of unemployed people who are both willing & able to work
b)
percentage of unemployed people who are willing but not able to work
c)
percentage of unemployed people who are able but not willing to work
15.
A former college basketball star who played one year in the NBA before being cut decides to leave his job at UPS and begin training full-time for try-out with the Hawks. While he trains he is experiencing
a)
seasonal unemployment
b)
frictional unemployment
c)
cyclical unemployment
d)
structural unemployment
16.
GDP that is adjusted for inflation
a)
real GDP
b)
nominal GDP
c)
price level
d)
net national product
17.
GDP that is NOT adjusted for inflation
a)
real GDP
b)
nominal GDP
c)
price level
d)
net national product
18.
The Consumer Price Index (CPI) is most often used to measure
a)
Inflation
b)
Unemployment
c)
Interest
d)
GDP
19.
The Bureau of Labor Statistics (BLS) is most often used to measure
a)
Inflation
b)
Unemployment
c)
Interest
d)
GDP
20.
The formula for GDP is
a)
C+X+G+Y
b)
C-I-G-Xn
c)
C+I+G+Xn
d)
I+G-Xn-Xi
21.
____________always decreases purchasing power
a)
fiscal policies
b)
inflation
c)
monopoly
d)
trade barriers
22.
How many people are NOT in the Labor Force?
Unemployed (Looking for job) = 20
Retired = 5 Prison = 2
School = 10 Employed = 180
Unemployed (not looking for job) = 20
Unemployed (Looking for job) = 20
Retired = 5 Prison = 2
School = 10 Employed = 180
Unemployed (not looking for job) = 20
a)
20
b)
40
c)
37
d)
140
23.
If one wanted to know whether there had been inflation or not, the BEST measure to observe would be the
a)
GDP
b)
Business cycle
c)
CPI
d)
National Dept
24.
Which year is the base year?
1997 CPI = 95
1998 CPI = 97
1999 CPI = 100
2000 CPI = 104
1997 CPI = 95
1998 CPI = 97
1999 CPI = 100
2000 CPI = 104
a)
1997
b)
1998
c)
1999
d)
2000
25.
Did prices go up or down in 2009?
2008 CPI = 212
2009 CPI = 214
2008 CPI = 212
2009 CPI = 214
a)
Up
b)
Down
26.
If the Price of the Market Basket in 2008 is $40 and the Price of the Market Basket in the base year is $20, what is the CPI for 2008?
a)
2
b)
60
c)
80
d)
200
27.
Money loses its value when it
a)
It becomes too plentiful
b)
becomes too portabale
c)
is divisible
d)
is durable
28.
Which of these do we have to have to construct a consumer price index?
a)
Base Year
b)
Prices for items
c)
Items to go in market basket
d)
All of these
29.
If one wanted to know whether there had been inflation or not, the BEST measure to observe would be the
a)
GDP
b)
Business cycle
c)
CPI
d)
National Dept
30.
The Consumer Price Index (CPI) is best used to determine
a)
the Dow Jones Index.
b)
the rate of inflation.
c)
the unemployment rate.
d)
currency exchange rates.
31.
High inflation could discourage people from taking college classes because
a)
jobs would be easy to find.
b)
financial aid would be harder to get.
c)
prices for books and tuition would be rising.
d)
there would be more people looking for work.
32.
The market basket cost of 2016 is $100,000. If the market basket for 2017 is $200,000 and 2016 is our base year, what is the CPI for 2016?
a)
100
b)
140
c)
200
d)
80
33.
The Unemployment rate is calculated as the number of
a)
unemployed persons divided by number of employed persons
b)
persons in the labour force divided by the number of unemployed
c)
unemployed persons divided by the size of the labour force
d)
employed persons divided by number of unemployed persons
34.
The unemployment rate does not account for which two types of people?
a)
discouraged workers (hidden unemployed) and those employed
b)
full time carers and those in school
c)
retirees and those in prison
d)
discouraged workers (hidden unemployed) and underemployed
35.
Mr. Johns is quitting his job as a teacher and moving in Ohio to take a new job in California. He is
a)
Cyclically unemployed
b)
Seasonally Unemployed
c)
Structurally Unemployed
d)
Frictionally Unemployed
36.
What is demand pull inflation?
a)
a decrease in price due to a decrease in supply
b)
a rise in price level due to an increase in demand
c)
a decrease in price due to an increase in supply
37.
When individuals lose jobs due to fall in aggregate demand, often during an economic recession.
a)
Structural Unemployment
b)
Cyclical Unemployment
c)
Frictional Unemployment
d)
Seasonal Unemployment
38.
Individuals are unemployed due to a lack in skills that modern industries need, change in technology.
a)
Cyclical Unemployment
b)
Frictional Unemployment
c)
Structural Unemployment
d)
Seasonal Unemployment
39.
When an individual is unemployed because they are looking for a new job.
a)
Frictional Unemployment
b)
Cyclical Unemployment
c)
Structural Unemployment
d)
Seasonal Unemployment
40.
When individuals are unemployed due to a change in season, e.g. Santa Claus after christmas.
a)
Seasonal Unemployment
b)
Frictional Unemployment
c)
Structural Unemployment
d)
Cyclical Unemployment
100 %
