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WorksheetsSY1819 Economics IA1 Review Game
Total questions: 123
Worksheet time: 2hrs 8mins
Name
Class
Date
1.
Factors of production include which of the following?
a)
Goods and services
b)
Land, labor, capital, and entrepreneurship
c)
Technology products and entrepreneurship
d)
All of the products produced in an economy
2.
How is Human Capital different from Physical Capital?
a)
Human Capital is related to labor only, Physical Capital is related to tools/machines
b)
There is no difference between Human Capital and Physical Capital.
c)
Human Capital is related to natural raw materials; Physical Capital is related to machines/tools
d)
Human Capital is related to knowledge, skills, and experience; Physical Capital is related to machines/tools
3.
How do the risks that entrepreneurs take benefit society?
a)
Jobs are created
b)
Profits are earned
c)
Innovation is encouraged
d)
all of the above
4.
If you spend $8 to go to the movies instead of going out to eat with friends, how would you describe the Opportunity Cost?
a)
The enjoyment you received from going to the movie.
b)
$8 that you no longer have available.
c)
The $8 you could have spent on something else.
d)
The satisfaction you would have received from eating the meal.
5.
The value of the next best alternative that has to be given up for the action that is chosen is the:
a)
opportunity cost.
b)
productivity.
c)
Factor of production
d)
trade-off.
6.
Why does scarcity exist?
a)
limited wants, but unlimited resources
b)
the four factors of production are not available at the same time
c)
government control of the market
d)
limited resources, but unlimited wants
7.
The resources used to make all goods and services are the
a)
Opportunity Costs
b)
Productive Resources
c)
Production Possibilities
d)
Production Trade Offs
8.
Any resources that are made by humans and used to create other goods and services are called
a)
capital
b)
labor
c)
services
d)
production
9.
What is the opportunity cost of a decision?
a)
the different ways that a different person might have made the decision
b)
the best possible way the question could have been decided
c)
the series of alternative decisions that could have been made
d)
the most desirable alternative given up for the decision
10.
What is a factory building an example of?
a)
an economic trade-off
b)
technology
c)
human capital
d)
physical capital
11.
Which of the following lists would an economist consider to be land?
a)
factories, office buildings, assembly lines, workers
b)
dams, bridges, rock quarries, oil wells
c)
farm fields, tractors, pesticides, fertilizers
d)
iron ore, natural gas, fertile soil, water
12.
SSEF2b Use the table to answer the question. A rational decision would mean hiring how many police officers?
a)
4
b)
5
c)
6
d)
7
13.
It is considered "rational" to continue add more to the margin as long as the marginal benefit is____ to the marginal cost.
a)
Greater than or equal to
b)
Less than
c)
A big trade off
d)
none of the above
14.
SSEF2c These motivate individuals, businesses, and/or governments to undertake an action or avoid an action.
a)
Costs
b)
Scarcity
c)
Incentives
d)
Money
15.
SSEF2c A subsidy given to firms that develop products which improve public health or safety. (A subsidy is a monetary transfer from a government to a business for undertaking a particular desirable action.) This would be an example of a
a)
Negative Incentive
b)
Positive Incentive
c)
Charity
d)
Innovation
16.
The drill instructor forced the cadets to run an extra mile because they did not keep their bunks clean enough. What is this an example of?
a)
Positive incentive
b)
Abuse
c)
Negative incentive
d)
Being a tough guy
17.
How does specialization encourage international trade?
a)
When countries specialize in one product, they can master it and sell it to other nations.
b)
When countries make many different products, they do not have to trade.
c)
Specialization uses resources from many countries.
d)
Specialization does not encourage international trade.
18.
Which is the best example of specialization?
a)
A surf shop lowers the price on swimsuits.
b)
A dry cleaner spends extra time on grease spots.
c)
An assistant in a tailoring shop only replaces zippers.
d)
An online clothing outlet offers customized monograms.
19.
In a voluntary exchange, why do people give something up?
a)
to increase their self-sufficiency
b)
to get something they want more
c)
to allocate scarce resources fairly
d)
to allocate scarce resources fairly
20.
What's the relationship between specialization and voluntary exchange?
a)
specialization leads to a need for voluntary exchange
b)
specialization exists because of voluntary exchanges
c)
voluntary exchanges causes specialization
d)
voluntary exchange negates the need for specialization
21.
•Workers perform fewer tasks in order to operate more efficiently
a)
Land
b)
Division of Labor
c)
Factors of Producation
d)
Marginal Benefit
22.
SSEF4a Which type of economic system would have the least amount of government regulation?
a)
Mixed
b)
Command
c)
Market
d)
Socialist
23.
SSEF4 Which is a fundamental questions every society must answer?
a)
What goods and services are to be produced?
b)
How are the goods and services to be produced?
c)
For whom are the goods being produced
d)
All of the above
24.
In a market economy, producers are forced to create better products more efficiently because of _______ with other firms in the marketplace
a)
regulation
b)
competition
c)
government control of capital
d)
equity
25.
Command economies suffer from lack of innovation due to not having much economic _______ or positive ________ like profit motive
a)
Security/Efficiency
b)
Employment/Security
c)
Growth/Growth
d)
Freedom/Incentives
26.
SSEF4b This economic goal provides safety nets to people who need them.
a)
equity
b)
freedom
c)
security
d)
stability
27.
SSEF4b Which economic goal lsited below would most be associated with a command economy?
a)
Security
b)
Efficiency
c)
Growth
d)
Freedom
28.
The United States economy is one in which producers are generally free to produce what they want, and consumers are free to purchase what they desire, so long as no laws are broken. At the same time, however, the government does regulate the aspects of the economy. The United States can BEST be described as a
a)
Market Economy
b)
Command Economy
c)
Liberated Economy
d)
Mixed Market Economy
29.
SSEF4c We start a new colony on mars and must distribute the scarce resources we have to everyone. We do so by having our leader allocate them as he decides. This strategy for allocating resources would be considered:
a)
Lottery
b)
Authority
c)
Sharing
d)
Majority rule
30.
SSEF4a Consumer sovereignty, profit motive, private ownership, and competition are all most associated with which economic system?
a)
Command
b)
Market
c)
Traditional
d)
None of the above
31.
SSEF5a Which of the following is the best example of the government provides public goods and services?
a)
The government increases quotas on auto production due to a lack of SUVs
b)
The government built the national intestrate hwy system in the 1950s for greater connectivity
c)
The government provides subsidies to cotton growers to counter act imported cotton
d)
The government legalizes medical marijuana for cancer patients
32.
SSEF5 (a) Which of the following is an example of the government protecting private property?
a)
Issuing a patent to an inventor for a new seat belt design
b)
redistributing income through taxation
c)
making transfer payments to people in need
d)
producing military goods
33.
SSEF5a The government transfer of tax money to individuals in need, such as Social Security, is an example of:
a)
Redistributing income
b)
opportunity costs
c)
trade offs
d)
inefficient allocation of resources
34.
SSEF5a The government transfer of tax money to individuals in need, such as Social Security, is an example of:
a)
Redistributing income
b)
opportunity costs
c)
trade offs
d)
inefficient allocation of resources
35.
SSEF5 Which of the following would be considered a Public Good?
a)
Civil Court
b)
Daycare
c)
Best Buy
d)
Taco Bell
36.
SSEF5 Which of the following is NOT a role of the government in our mixed market economy?
a)
Providing some safety net programs through by redistributing income
b)
Regulating industry for health and safety reasons
c)
Directing the use of private property
d)
Providing public goods and services
37.
SSEF5(b) In Georgia, the Public Service Commission regulates the rates charged to customers by Georgia Power to ensure:
a)
Georgia Power gets enough money to make a profit
b)
Georgia Power does not profit from the sale of electricity in Georgia
c)
consumers are protected from power plant pollution
d)
consumers are protected by sharp price increasses by a monopoly
38.
SSEF5 Which of the following illustrates the government redistributing income through a transfer payment?
a)
cigarette tax
b)
public schools
c)
social security
d)
speeding ticket
39.
SSEF5b The repeal of the Glass Stegal act by Congress in 1999 led to increased competition and innovation by investment firms. But some consider this to be a major cause of the 2007 economic recession. This repeal is an example of a negative impact of
a)
The trade offs of human capital
b)
Wall Street behaving badly
c)
Increased regulation
d)
Deregulation
40.
When we increase regulation of industries, such as the auto industry, we gain safer and more energy efficient vehicles, but the trade off is usually
a)
Higher costs of autos
b)
Lower costs of autos
c)
Increased productivity and efficiency in production
d)
Lower quality goods
41.
SSEF6(a) The payments by firms for scarce resources can be called:
a)
costs
b)
revenue
c)
marginal benefit
d)
profit
42.
SSEF6(b)(c) Investment in technology, training, healthcare and other areas can promote economic growth and lead to a higher
a)
standard of living
b)
voluntary exchange
c)
marginal cost
d)
trade-off
43.
This shows the various combinations and opportunity costs of production, when a company of country is efficiently using resources.
a)
Production possibilities curve
b)
trade offs
c)
specialization
d)
comparative advantage
44.
An investment in which of the following do you think would best promote long term Economic Growth in a country with low economic development?
a)
Free and mandatory quality public education for all until age 16
b)
Free smartphones for all
c)
Massive increase in military spending
d)
Building airports in all majorcities
45.
SSEF6 New technology and equipment would fall under which factor of production?
a)
Capital
b)
Land
c)
Labor
d)
none of the above
46.
SSEF6 Which is the best way to increase productivity and economic growth?
a)
Investing in new technology and equipment
b)
Increasing labor laws
c)
Increasing the minimum wage
d)
none of the above
47.
What can cause a production possibilities curve to move to the right?
a)
Greater quality or quantity of resources
b)
Increased trade
c)
New technology
d)
All of the above
48.
What do points A, B, and C represent?
a)
Production at greater than the country's minimum potential
b)
Production is less than the country's minimum potential
c)
Productive inefficiency
d)
Productive efficiency
49.
What does point Y represent on the PPC?
a)
Efficiency
b)
Not possible with current resources
c)
Inefficiency
d)
A future shift inward of the PPC
50.
Which point represents "resources are not being used efficiently, or resources are being wasted or idle"?
a)
Point A
b)
Point Y
c)
Point X
d)
All of the above
51.
Which phrase could be used to describe a PPC shifting outward?
a)
Resources wasted or idle
b)
Economic Growth
c)
Inefficient use of resources
d)
A decrease in demand for a product
52.
If a natural disaster strikes, where would a production possibilities curve most like shift
a)
No shift
b)
To the left (as seen in Case 1)
c)
To the right (as seen in Case 2)
d)
all of the above
53.
The relationship between inputs and outputs. That is, how many outputs do you get based on your inputs.
a)
Productivity
b)
Opportunity Cost
c)
Scarcity
d)
Voluntary Exchange
54.
The picture shows higher employment rates for those with more advanced degrees. In economic terms, what does this likely translate to?
a)
The average income level for high school graduates is comparative to those with doctoral degrees
b)
There is not a high correlation between education level and income level
c)
A college degree is expensive and time consuming
d)
Higher levels of human capital lead to higher standards of living
55.
The opportunity cost of increasing production from point C to point A is...
a)
1 boat
b)
2 boats
c)
5 trucks
d)
3 trucks
56.
The Market for labor would be considered a ______________ market.
a)
Product
b)
Factor
c)
Wage
d)
Monopolistic
57.
Which of the following is TRUE regarding households, businesses, and government in the US economic system?
a)
Households pay taxes to the government but businesses dont
b)
Households act as consumers while government and businesses act only as producers
c)
The three are economically interdependent on one another
d)
Government regulates what businesses can produce but not what consumers can buy
58.
Darren owns his own plumbing business. He spends some of his company's profits on new pipes and tools. Jennifer then hires Darren and his assistant to install a new septic tank in her back yard. Which of the following statements is TRUE?
a)
Darren is labor and Jennifer is entrepreneur
b)
Darren is the entrepreneur, Jennifer's yard is the land, and Darren's assistant represents capital
c)
Darren bought his tools in a factor/Resource market and Jennifer paid for his services in a product market
d)
Darren's company reprsents a household
59.
Kenneth needed a new shirt for the football game this Friday. He went to the mall and purchased a shirt from H&M. Which market did Kenneth interact in to purchase his shirt?
a)
product market
b)
firms
c)
factor market
d)
households
60.
How do individuals contribute to the circular flow of economic activity?
a)
Businesses buy goods and services from individuals
b)
Businesses purchase productive resources in product markets
c)
Individuals provide labor for factor markets and buy goods in product markets
d)
Individuals buy productive resources from factor markets and provide labor for product markets
61.
The movement of money as revenue, factor payments, income, and expenditures is shown by which arrows respectively?
a)
3, 8, 6, 1
b)
8, 6, 1, 3
c)
4, 2, 5, 7
d)
5, 7, 4, 2
62.
SSEMI1 In which market do consumers purchase goods and services?
a)
Factor
b)
Product
c)
Households
d)
none of the above
63.
SSEMI1 In which market do Firms purchase the scarce resources from households?
a)
Factor
b)
Product
c)
Households
d)
none of the above
64.
SSEMI1 Which would best fit at (3) on the circular flow?
a)
Goods and Services
b)
Revenue
c)
Income
d)
Rent
65.
SSEMI1 Which would best fit at (5) on the circular flow?
a)
Wages
b)
Revenue
c)
Scarcity
d)
Labor
66.
What happened with the price of stuffed animals increased from 10 to 25?
a)
Supply increased from 100 to 400
b)
The quantity supplied increased from 100 to 400
c)
demand increased from 100 to 400
d)
all of the above
67.
-Owned by a single owner
-No separation between owner and business
-Unlimited personal liability
-No separation between owner and business
-Unlimited personal liability
a)
Corporation
b)
Limited Liability Company
c)
Partnership
d)
Sole Proprietorship
68.
-Publicly traded company
-Governed by Board of Directors
-CEO, COO, CFO
-Stocks sold to raise capital
-Governed by Board of Directors
-CEO, COO, CFO
-Stocks sold to raise capital
a)
Corporation
b)
Limited Liability Company
c)
Partnership
d)
Cooperative
69.
-Two or more owners
-Unlimited Personal Liability
-No separation between owners and business
-Unlimited Personal Liability
-No separation between owners and business
a)
Limited Partnership
b)
Corporation
c)
Cooperative
d)
Partnership
70.
"A company's financial debt or obligations that arise during the course of its operation..."
This definition best describes...
This definition best describes...
a)
Profit
b)
Revenue
c)
Liability
d)
Lateral Alignment
71.
Which of the following is not an advantage of a sole proprietorship?
a)
Easy to start
b)
Owner is their own boss
c)
Owner has unlimited liability
d)
Owner receives all the profits
72.
One advantage of a partnership is that there are more sources of capital available than in a sole proprietorship.
a)
True
b)
False
73.
If a single firm raises its price it will not be able to sell any of its output.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
74.
A market that has a few sellers of basically the same goods.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
75.
One single firm controls the entire industry.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
76.
A market where brand-name loyalty is more important than product differentiation.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
77.
Only five firms produce this product in the Unites States.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
78.
The actions of an individual seller do not affect the overall supply or price of a good or service.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
79.
Firms in this kind of market produce goods that are very close substitutes.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
80.
Public utilities are an example.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
81.
A Fruit Shake Company just upgraded its capital equipment by buying a machine that makes fruit shakes faster and cheaper than the original machine. What effect should this have on the graph?
a)
price rises, quantity rises
b)
price drops, quantity rises
c)
price rises, quantity drops
d)
price drops, quantity drops
82.
The principle that consumers tend to buy less of a good or service when its price increases, all else held equal, is called
a)
the law of supply
b)
the law of demand
c)
the law of increasing costs
d)
the law of maximum satisfaction
83.
If there is an increase in income for the households in this market, what is the MOST LIKELY result?
a)
The equilibrium price will fall
b)
The demand curve will shift to the left
c)
The demand curve will shift to the right
d)
The supply curve will become a vertical line
84.
According to the graph, what is the equilibrium price of movie tickets?
a)
$10
b)
$600
c)
$14
d)
$20
85.
If the price of a good increases, the quantity demanded by consumers and the quantity supplied by producers will change in which of the following ways?
a)
Quantity demanded increases, quantity supplied increases
b)
quantity demanded increases, quantity supplied decreases
c)
quantity demanded decreases, quantity supplied increases
d)
quantity demanded decreases, quantity supplied increases
86.
Of the following, which situation could cause the shift of the demand curve from D1 to D2 in the graph above?
a)
Yogurt prices rise due to a milk shortage.
b)
Yogurt prices fall due to a milk surplus.
c)
A new health report says that yogurt makes you sick.
d)
A new health report says that yogurt keeps you healthy.
87.
Which factor might cause an increase in the supply of a product?
a)
A decrease in productivity
b)
Fewer sellers in the marketplace
c)
An increase in worker's training
d)
An increase in the cost of raw materials
88.
Suppose that the government set the price of chocolate at $6 per pound. Which of the following statements best describes an effect of this price control?
a)
There would be a surplus of 40 pounds of chocolate
b)
Less chocolate would be demanded at $4 than at $6
c)
Producers of chocolate would want the price set at $4
d)
There would be a shortage of 20 pounds of chocolate
89.
Mr. Pip's burrito company is selling a lot of burritos, and people are willing to pay higher and higher prices for the burritos. According to the law of supply, what should Mr. Pip's Burrito company do?
a)
Demand fewer burritos
b)
Demand more burritos
c)
Supply more burritos
d)
Supply less burritos
90.
SSEMI2 Which of the following would NOT cause a demand curve to shift?
a)
a change in a consumer's income level
b)
a change in population
c)
a change in a consumer's expectations
d)
a change in the price of a product.
91.
SSEMI2 f An increase in the price of milk causes a decrease in the demand for cereal. The two products are
a)
substitutes
b)
complements
c)
unrelated
d)
demand elastic
92.
SSEMI2 f The government is giving every individual 18 and above a direct $20,000.00 tax rebate this year. What determinant of demand is this and what would be the likely impact on car sales?
a)
Change in Consumer Tastes, which would increase demand for cars
b)
Change in Consumer Price Expectations, which would increase car sales
c)
Change in Number of Consumers in the Market, which would decrease car sales
d)
Change in Consumer Income, which would increase car sales
93.
SSEMI2 f I know that the iPhone 8 is coming out next week but really need a phone badly. I'm thinking about buying an iPhone 7 when the new iPhone comes to the market because it will be much cheaper than today's price. What determinant of demand does this suggest?
a)
Change in Price of Complementary Good
b)
Expectations of future price changes
c)
Change in Number of Consumers in the Market
d)
Change in Consumer Income
94.
SSEMI2 a According to the law of supply, what type of relationship is there between price and quantity supplied?
a)
Demand will decrease when supply increases in price
b)
Price and quantity supplied will go hand in hand, that is, as prices increase, quantity supplied with increase
c)
Price changes have no impact on quantity supplied
d)
The law of demand states an inverse relationship between quantity supplied and price
95.
According to the table, when the price of potatoes decreases from $4 to $2, what happens?
a)
Demand for potatoes increases
b)
The quantity demanded for potatoes increases from 20 to 60
c)
The supply of potatoes stays the same
d)
The demand curve shifts to the right
96.
SSEMI2(a) The movement from P1 to P2 along the curve shown above is called a(an):
a)
decrease in demand
b)
decrease in quantity demanded
c)
increase in demand
d)
increase in quantity demanded
97.
The DEMAND CURVE IS ___________ sloping.
The SUPPLY CURVE IS _______ sloping
The SUPPLY CURVE IS _______ sloping
a)
Upward, downward
b)
Downward, upward
c)
constant, non constant
d)
straight, low
98.
Macroeconomics is the study of
a)
Big economic theories
b)
An entire economy
c)
Supply & demand
d)
The opportunity cost of everything
99.
Which is NOT one of the three key indicators?
a)
GDP growth
b)
CPI
c)
Unemployment Rate
d)
per capita GDP
100.
Which is missing part of the definition for GDP?
The market value of _____ produced within a country in a certain period of time.
The market value of _____ produced within a country in a certain period of time.
a)
All manufactured goods
b)
All goods & services
c)
Everything purchased
d)
All final goods & services
101.
Which is the correct part of the formula (C+I+G+XN) for figuring out GDP?
a)
Consumer supply
b)
Interest earned
c)
Government spending
d)
Next year's exports
102.
Which is used as a key indicator of economic health?
a)
straight GDP
b)
per capita GDP
c)
GDP growth
d)
Aggregate GDP
103.
CPI does NOT measure...
a)
The growth in output of an economy.
b)
Rises in prices.
c)
How much G/S cost now compared to before.
d)
Inflation.
104.
Which statement is true about the Market Basket?
a)
It is a small sample of prices in only some areas of the country
b)
It is composed of the same G/S no matter where it sampled
c)
Those compiling the market basket look for sale prices
d)
The market basket does not include big items like houses or cars
105.
What is they key element of the definition for unemployment?
a)
You must've been unemployed for over a week.
b)
You can't have been fired from your job.
c)
It can be either a part-time or full-time job you left.
d)
You must be out of work and looking for another job.
106.
Which type of unemployment is this: Jon left his job in GA because he is moving to be closer to family in MO.
a)
cyclical
b)
frictional
c)
structural
d)
not unemployed
107.
Which type of unemployment is this: Danielle wants a higher salary and is beginning to think about leaving her current job and looking for another.
a)
cyclical
b)
frictional
c)
structural
d)
not unemployed
108.
Which type of unemployment is this: Stephen has been desparately trying to find a job, but because of the stock market crash no one is hiring.
a)
cyclical
b)
frictional
c)
structural
d)
not unemployed
109.
What stage is an economy experiencing at letter B?
a)
trough
b)
growth
c)
expansion
d)
contraction
110.
If a nation's GDP growth rate is .03% and dropping, the CPI is 1.1% and dropping, and the unemployment rate is 8.7% and climbing, which stage is this nation most likely at?
a)
A
b)
B
c)
C
d)
D
111.
What is the difference between a recession and a depression?
a)
A recession is a period of economic growth while a depression is a period of economic contraction.
b)
A recession is more severe than a depression and lasts longer.
c)
A depression is a particularly deep recession with high levels of unemployment.
d)
Unlike a recession, a depression includes high levels of inflation
112.
Which of the following is most likely to be worried about high inflation?
a)
a shopkeeper
b)
a retired couple on a fixed income
c)
a doctor with a suburban practice
d)
a factory worker
113.
Products that would be used in calculating GDP include
a)
plastic manufactured in a factory in Kentucky and sold to toy manufacturers around the world to make plastic toys
b)
cotton cloth manufactured in India and sold to clothes makers in the United States
c)
toys manufactured in China at a factory owned by a U.S. company.
d)
cars manufactured in Tennessee at a factory owned by a Japanese automobile company.
114.
The calculation of GDP would include
a)
the sale of a 25-year-old house.
b)
the income of a person who pays rent by babysitting for the homeowner’s children
c)
the income of a high school English teacher
d)
the price of the steel used to build a new hotel
115.
The lowest point in an economic contraction is called
a)
A peak
b)
A trough
c)
A recession
d)
A depression
116.
In an economy, when the price level falls, consumers and firms buy more goods and services. This relationship is represented by the
a)
Equilibrium GDP
b)
Business cycle
c)
aggregate supply curve
d)
aggregate demand curve.
117.
What is the difference between seasonal unemployment and structural unemployment?
a)
Seasonal unemployment occurs because of schedules, whereas structural occurs because people lack skills
b)
Seasonal unemployment occurs because of schedules, whereas structural occurs because people lack skills
c)
Seasonal unemployment is rare in a modern society, whereas structural is not.
d)
Seasonal unemployment occurs only in the summer, whereas structural can occur all year round
118.
What does it mean when a person is underemployed?
a)
The person has a job but they are overqualified for it.
b)
The person is not making as much money as they need.
c)
The person is looking for work in a special field.
d)
The person has been working but now is laid off
119.
What is a major problem for businesses during a period of chronic inflation?
a)
Their money loses its value.
b)
They cannot anticipate their costs.
c)
They do not know when the inflation will stop
d)
They have difficulty hiring help
120.
A typewriter repairman loses their job because no one uses typewriters anymore
a)
Structural unemployment
b)
Frictional unemployment
c)
Seasonal unemployment
d)
Cyclical unemployment
121.
If Bob loses his job at the GM plant because car manufacturing is slow due to a downturn in the economy, you can conclude that he is
a)
Cyclical unemployed
b)
Frictional unemployed
c)
Seasonal Unemployed
d)
Structural unemployed
122.
GDP (gross domestic product) is supposed to indicate economic health because it is supposed to rise when
a)
Inflation is low
b)
Prices are falling
c)
Wealth is being created
d)
Unemployment levels are falling
123.
Which example BEST illustrates that GDP (gross domestic product) is not always a good indicator of economic health?
a)
The GDP falls because scarcity of materials slows the rate of production.
b)
Goods produced for infrastructure projects help raise the GDP.
c)
Money spent repairing hurricane damage helps raise the GDP.
d)
GDP consumer spending declines. The GDP falls when consumer spending declines.
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