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Worksheets

macroeconomics

Total questions: 20

Worksheet time: 40mins

Name
Class
Date
1.
The lowest point of output in a recession, before a recovery begins
a)
trade deficit
b)
depression
c)
trough
d)
recovery
2.
All of the following are points on the business cycle EXCEPT
a)
Peaks
b)
Troughs
c)
Expansion
d)
GDP
3.
High levels of GDP per capita indicate...
a)
Higher levels of happiness 
b)
Higher standard of living
c)
Equal levels of wealth 
d)
Self-sufficient communities
4.
Where on the business cycle would you find the highest unemployment?
a)
A
b)
B
c)
C
d)
D
5.
What can the government do to give a boost to a slowing economy? 
a)
raise taxes
b)
lower taxes
c)
increase interest rates
6.
What the definition of deflation? 
a)
decrease in the average price of goods and services
b)
occurs when the price of goods and services rise
c)
increase in prices
d)
I don't know
7.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
8.
What type of unemployment did people experience during the Great Depression?
a)
Seasonal
b)
Structural/Technological
c)
Cyclical
d)
Frictional
9.
What causes cost push inflation
a)
An increase in demand for goods and services
b)
An increase in supply
c)
A rise in production costs passed on to consumers
d)
A fall in the price of imports
10.
What causes demand pull inflation?
a)
rise in price due to a decrease in supply
b)
a rise in price level due to an increase in consumption
c)
a rise in price due to an increase in the cost of production
d)
a decrease in price due to a decrease in supply
11.
What type of inflation is good for the economy?
a)
Hyperinflation
b)
Stagflation
c)
Creeping Inflation
d)
Deflation
12.
A literary editor leaves her job in New York to look for a new job in San Francisco.
a)
Frictional
b)
Cyclical
c)
Structural
d)
Not counted
13.
Seth is laid off from work because he is a life guard at the local water park. He is experiencing what kind of unemployment?
a)
Structural
b)
Seasonal
c)
Frictional
d)
Cyclical
14.

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

a)

inflation

b)

recession

15.

The percentage of a deposit that a bank must hold on to is called the ______.

a)

Reserve Requirement

b)

Credit

16.

The expansionary fiscal policy involves

a)

only an increase in taxes

b)

a decrease in government spending and/or an increase in taxes

c)

only a decrease in government spending

d)

an increase in government spending and/or a decrease in taxes

17.

Sonia makes RM30,000 per year and pays RM6,000 in income taxes. Raj makes RM40,000 and pays RM10,000 in income taxes. This is an example of

a)

a regressive tax

b)

a progressive tax

c)

a proportional tax

d)

a sale and service tax

18.

National debt from internal sources are loans obtained from

a)

international monetary funds

b)

loans approved for overseas projects by the world bank

c)

sale of government securities in the international financial markets

d)

investment certificates and government securities to the employees

19.

Suppose the population is 175 million people, the number of people unemployed is 20 million and the number of people employed is 130 million. Calculate the labour force participation rate

a)

13.3%

b)

15.4%

c)

85.7%

d)

86.7%

20.

To help close an inflationary gap, the government could

a)

decrease taxes

b)

run budget deficits

c)

run budget surpluses

d)

increase government spending