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WorksheetsUnit 3 - Macroeconomics Certification Quiz: Economic health
Total questions: 41
Worksheet time: 21mins
The study of large-scale economic factors dealing with the economy of a nation, region, or of the world as a whole is called:
Microeconomics
Macroeconomics
GDP
Supply & demand
No single economic measure is sufficient to diagnose the health of an economy:
True
False
GDP is a macroeconomic tool which measures:
The dollar value of all final goods and services produced within a country’s borders in a given year
the percentage of unemployed workers in the total labor force.
a general increase in prices and fall in the purchasing value of money.
the average period that a person may expect to live.
GDP stands for:
gross domestic product
general domestic production
George Da President
good dinner pizza
The GDP of the United States is the __________ in the entire world at ~$19.4 trillion.
highest
lowest
dumbest
best smelling
Which one of these is NOT a limitation of GDP as an economic health measure?
Government spending
Nonmarket activity
Underground economy
Quality of life
SELECT ALL THAT APPLY: Which of the following are other measures of economic health?
Stock market
Inflation & affordability
Unemployment
Consumer spending
Which of the following factors would be an indicator of a healthy economy?
GDP growth at 3.5%
Unemployment at 10%
Wages stagnating
Stock prices declining
We never really know where we are at in the business cycle, but economists can attempt to predict using measures of economic health.
True
False
This economic model is called:
The business cycle
Supply & demand
Production Possibilities Curve
Circular Flow Model
Points 1 and 4 represent
Peaks and expansion
Troughs and recession
Peaks and depression
Contraction and expansion
Point 2 represents
Contraction
Expansion
Peak
Trough
Point 3 represents
Trough
Expansion
Peak
Depression
Which recent historical event most represents Point 2 and 3 on the chart?
1980s farm crisis
2020 COVID recession
Great Depression
"Dot Com" Boom of the early 2000s
What is the biggest difference between a "recession" and a "depression"?
Length and severity of economic contraction
Depressions are more frequent than recessions
Depressions only happen when banks fail
Recessions are more severe than depressions
SELECT ALL THAT APPLY: Which of the following are factors that can expand or contract the economy?
Business investment
Interest rates and credit
Consumer expectations
External Shocks
A decline in business spending results in a decline in GDP
True
False
High interest rates encourage consumer and business borrowing, spending, and investment
True
False
When consumers feel better about the economy and their future prospects, they tend to spend more money
True
False
External shocks can happen anywhere in the world and can have positive or negative impacts on the business cycle
True
False
Which of the following would NOT be an example of an external shock?
9/11
Self-driving, autonomous vehicles
The internet
An increase in the consumer confidence index
Student loan debt could be the next big "bubble" to burst and have a negative impact on the economy
True
False
How does a government make money?
Profit
Taxes
Selling goods
Producing a product
SELECT ALL THAT APPY: Which of the following are examples of taxes collected by the government?
Property
Sales
Payroll
Income
How does a government decide what to spend money on?
Budget
Supreme Court decision
Executive Order
Speech
Fiscal policy is:
The use of government spending and revenue collection to influence the economy
The use of monetary policy by the Fed to influence economy
When supply exceeds demand
When the Federal Reserve prints money
The different between deficit and debt is:
That debt is the total amount of money a government has borrowed
That debt is the the amount by which a government's expenditures exceed revenues
That debit is how you use your card to pay for items
Deficit is when you have more money than you are spending
Which best describes "expansionary fiscal policy"?
Increasing government spending and lowering taxes
Decreasing government spending and increasing taxes
Increasing government spending and increasing taxes
Decreasing government spending and lowering taxes
Which best describes "contractionary fiscal policy"?
Increasing government spending and lowering taxes
Decreasing government spending and increasing taxes
Increasing government spending and increasing taxes
Decreasing government spending and lowering taxes
Which fiscal policy would you want to use at point 3?
Expansionary
Contractionary
Who is in charge of managing fiscal policy?
Elected officials
Mr. Covington
Police & firefighters
Pennywise the Clown from the movie IT
"The Fed" is the nickname for the:
Federal Reserve Bank of the United States
Federal Bureau of Investigation
Federal government
Jimmy "The Fed" Federico
Which is NOT a job of the Fed?
Process checks for the federal government
Loan money to individuals and small businesses
Regulate the money supply
Clear checks
Who puts US paper currency into circulation?
The Fed
The Treasury Department
The US Mint
The House of Representatives
What term is used to describe an increase in the general price of goods?
Inflation
Deflation
Stagflation
Monetary policy
Finish the statement: Monetary policy affects the _____________________, primarily through changing _____________.
money supply, interest rates
Budget, fiscal policy
interest rates, reserve requirement
Federal Reserve, printing money
If you want to speed up the economy, the Fed can _________ the money supply by __________ interest rates.
increase, decreasing
decrease, increasing
maintain, maintain
increase, increase
If you want to slow down the economy, the Fed can _________ the money supply by __________ interest rates.
increase, decreasing
decrease, increasing
maintain, maintain
increase, increase
The Fed uses interest rates to try and influence:
Unemployment rate & inflation
Housing market & food prices
Student loan debt & national deficit
Inflation & fiscal policy
Ideally, the Fed's target for unemployment is ______.
2%
0%
5%
10%
Ideally, the Fed's target for inflation is:
2%
0%
5%
10%
