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WorksheetsYEAR 11-TERM ASSESSMENT-ECONOMICS
Total questions: 20
Worksheet time: 40mins
1. Who is in charge of fiscal policy?
Government
Federal Reserve
Taxing & spending to help the economy grow is referred to as
Expansionary policy
Contractionary policy
Monetary policy
Budget deficit
The goal of monetary policy is to
sell bonds
reduce unemployment
prevent inflationary and recessionary economic periods
increase tariffs on foreign countries
During a recession, which of the following is likely to occur?
an increase in real wages
an increase in production
and increase in the GDP growth rate
an increase in the unemployment rate
Government budget comprises of
government spending and income tax only
government revenue and government expenditure
transfer payment and government revenue
government spending and indirect tax
A budget deficit occurs when...
The government brings in more revenue than it spends for a given year
The government spends more money than it brings in for a fiscal year
Monetary Policy is the Federal Reserve Systems attempt to...
control the amount of money in circulation
control the Federal Government's debt
control state governments' spending
none of these answers are correct.
Increase in the national debt would be caused by
increasing govt. spending and increase taxes
increasing govt. spending and decrease taxes
decreasing govt. spending and increase taxes
increase interest rates and decrease the money supply
During a period of recession the best action would be
increase the money supply and lower interest rates
decrease govt. spending and decrease taxes
decrease the money supply and increase govt. spending
increase interest rates and decrease the money supply
What is the equation of GDP?
C + I + (X+N)
C + I + G
C + I + G + (X-N)
C + G + U + (X+N)
Which of the following is the best measurement of economic growth?
Nominal GDP
Real GDP
GDP per Capita
Real GDP per capita
What is GDP divided by the size of the population?
Nominal GDP
GDP per capita
The labour force participation rate
GDP deflator
What is the total value of all final goods and services produced in the economy calculated using the prices of a selected base year?
Nominal GDP
Real GDP
Real GDP per capita
GDP per capita
What does this calculate?
(Nominal GDP ÷ real GDP) x 100
Real GDP
The unemployment rate
GDP deflator
GDP
Cars, TVs, computers belong in which part of the GDP formula?
GDP = C+I+G+(X-M)
Consumption Expenditure
Investment
Government Spending
Net imports
A general rule of thumb says that a country has experienced a recession if:
Real GDP has declined.
GDP has declined.
Nominal GDP has declined for at least two consecutive quarters.
Real GDP has declined for at least two consecutive quarters.
This is a tax that where you pay more the more money you make
Regressive
Proportional
Progressive
Flat
If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is
decreasing taxes.
decreasing spending.
decreasing the money supply.
decreasing the reserve requirement.
When the government spends more money than they take in each year is called a _________?
Debt
Deificit
Surplus
Expansionary
This is a tax where you pay less the more money you make
Progressive
Regressive
Proportional
