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Intro to Bus Ch1-2 Review

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Economic Growth refers to the steady growth in the production of goods and services.

a)

True

b)

False

2.

__________ occurs at the top of the business cycle.

a)

Recession

b)

Contraction

c)

Peak

d)

Expansion

3.

Suppose wages are going up faster than prices. What is the most likely effect?

a)

Unemployment will worsen because businesses will hire fewer employees

b)

Consumers will begin to buy fewer products

4.

3 letter acronym that describes a tool to measure inflation

(a)  

5.

Which is a component of GDP?

a)

Consumer spending

b)

Business spending for buildings, equipment, and inventory

c)

Government spending to pay employees and to buy supplies

d)

Exports of a country - imports of a country

e)

All of the above!

6.

The ___________ is the point where supply and demand are equal.

a)

opportunity cost

b)

scarcity

c)

market price

d)

Wants & Needs

7.

The more goods and services produced, the healthier an economy is considered to be.

a)

True

b)

False

8.

In the U.S. all people over the age of 21 do not have a full time job are considered to be unemployed.

a)

True

b)

False

9.

GDP measures a country's economic output during

a)

one week

b)

one month

c)

one year

d)

a five year period

10.

Which of these items would count towards a country's GDP?

a)

tomatoes still growing on the vine

b)

sheets of steel

c)

rolls of raw fabric

d)

a fully assembled washing machine

11.

Which of the following is NOT an example of a depression in the business cycle?

a)

high demand for goods and services

b)

a prolonged period of high unemployment

c)

businesses closing

d)

rapid decrease in GDP