WorksheetsEconomic Indicators
Total questions: 26
Worksheet time: 13mins
What are the 7 Economic Indicators?
Labor Productivity, GDP, GNP, Business Cycle, Alternative Indicators, PPI and Standard of Living
GDP, GNP, PPI, CPI, Seasonal Unemployment, Standard of living, and Labor Productivity
Labor Productivity, GNP, Inflation Rate, Unemployment Rate, Alternative Indicators, Standard of Living, and GDP
Frictional Unemployment, PPI, CPI, Alternative Indicators, Inflation Rate, Labor Productivity, and GDP
What is Gross Domestic Product (GDP)?
The output of goods and services produced by labor and property located within a country
The output per worker hour that is measured over a period of time (week, month, or year)
The total dollar value of goods and services produced by a nation, including goods produced abroad by U.S. citizens and companies
The measurement of the amount of quality of goods and services that a nation's people have
How is GDP measured?
Totaling the money spent in these area; Consumption, Investment, Imports and exports
Totaling the money spent in these area; Investment, Government Spending and Imports
Totaling the money spent in these area; Government Spending and Net Exports
Totaling the money spent in these area; Consumption, Investment, Government Spending and Net Exports
What is the formula used to calculate GDP?
Total Output/Total Input= GDP
GDP=GDP/its population
GDP=C+I+G (X-M)
What is unemployment?
The percentage of people in the labor force (over 16 years old) who are willing to work and actively seeking employment
Time spent between jobs when a worker is searching for or transitioning from one job to another.
Worker skills , pay, and workers live far away
Caused by annual change in weather or other conditions that reduce the demand for jobs
A type of unemployment that result from time spent in between jobs when a worker is searching for, or transitioning from one job to another.
Seasonal Unemployment
Frictional Unemployment
Cyclical Unemployment
Structural Unemployment
Occurs when jobs are available, however there is a mismatch of: Workers skills to the available jobs, Workers desired pay to the available jobs and workers live too far from the available jobs.
Technological Unemployment
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
Directly related to the trends in growth and production within the business cycle.
Cyclical Unemployment
Structural Unemployment
Frictional Unemployment
Technological Unemployment
Caused by annual changes in weather or other conditions that reduce the demand for jobs
Technological Unemployment
Cyclical Unemployment
Seasonal Unemployment
Structural Unemployment
The official unemployment rate is not an accurate indicator of actual unemployment in the economy because:
Structural unemployment is greater than cyclical unemployment at the going wage rate
The official rate does not reflect the number of people receiving unemployment compensation
The unemployment rate is less than natural (frictional) unemployment
Full employment is greater than natural unemployment
The official rate does not include people who have given up looking for work.
Which of the following people would be considered unemployed?
A person who quit a job in order to attend school full time
A person who quits work to care for their aging parents
A person who stayed home to raise children and now starts looking for a job
A person who works at three part-time jobs but is looking for a full-time job
A person who is qualified to teach but is driving a bus until a teching job becomes available
The economic cycle is the irregular changes in the level of total output measured by real GDP
True
False
What is the contractionary phase of the Economic (Business) cycle?
GDP declines and inflation rises
GDP Rises and Unemployment Rises
GDP declines and unemployment Rises
Real GDP declines and unemployment falls
What happens during the expansionary/recovery phase of the economic (business) cycle
Real GDP rises and unemployment falls
Real GDP rises and unemployment rises
Real GDP declines and inflation rises
Inflation increases and employment declines
What is inflation?
Rising general level of prices
Consumer Price Index
PPI
Which of the following groups would most likely benefit from unanticipated inflation?
Individuals who have borrowed money at fixed interest rates
Individuals who earn high incomes
Individuals who have fixed retirement incomes
Banks who have loaned out large sums at a fixed interest rate
Landlords who own apartments in cities with rent controls
CPI measures the change in price over a period of time of some 300 specific retail goods and services used by the average household.
True
False
If the consumer price index rose from 100 to 200, we would conclude that:
Consumer incomes have doubled
The prices in an average consumer's market basket have doubled
Each person's real income has been cut in half
The prices of all consumer goods have doubled
An increase in orders for durable goods indicates:
A drop in structural unemployment
An expanding economy
A contracting economy
An increase in CPI
Which of the following people would be considered cyclically unemployed?
An unemployed computer plant workers during a recession
An unemployed computer plant worker who was replaced by an automated production process
A computer plant worker who was fired for coming late to work repeatedly
A carpenter who has been laid off due to bad weather conditions
A high school economics teacher who is not working during the summer, but plans to go back and teach AP economics again in the fall.
Which of the following would be included in the calculation of gross domestic product?
Social security payment to a retired military officer
The purchase of a home built 10 years ago
Government purchase of a new submarine
Contributions to a charity organization
Work performed by a barber who cuts the hair of his or her own children
Which of the following would not affect the size of real GDP?
Consumer purchase of a new car for personal use
Government purchase of a new car for military
Business purchase of a new car for delivery vehicle
Consumer purchase of a rare renaissance painting
Consumer purchase of a haircut
As workers increasingly go back to school and learn new skills, and existing workers take courses to improve their job skills, we would expect to find the largest decrease in
Seasonal unemployment
Cyclical unemployment
Frictional unemployment
Structural unemployment
Classical unemployment
Is the total dollar value of goods and services produced by a nation, including goods produced abroad by U.S. citizens and companies a definition of GDP
True
False
High production costs increase prices
Supply Pull Inflation
Demand Pull Inflation
Cost- Push Inflation
Too many dollars chasing too few goods
Demand Pull
Cost Push
Supply Pull
Demand Push
