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YEAR 11-TERM ASSESSMENT-ECONOMICS

Total questions: 20

Worksheet time: 40mins

Name
Class
Date
1.

1. Who is in charge of fiscal policy?

a)

Government

b)

Federal Reserve

2.

Taxing & spending to help the economy grow is referred to as

a)

Expansionary policy

b)

Contractionary policy

c)

Monetary policy

d)

Budget deficit

3.

The goal of monetary policy is to

a)

sell bonds

b)

reduce unemployment

c)

prevent inflationary and recessionary economic periods

d)

increase tariffs on foreign countries

4.

During a recession, which of the following is likely to occur?

a)

an increase in real wages

b)

an increase in production

c)

and increase in the GDP growth rate

d)

an increase in the unemployment rate

5.

Government budget comprises of

a)

government spending and income tax only

b)

government revenue and government expenditure

c)

transfer payment and government revenue

d)

government spending and indirect tax

6.

A budget deficit occurs when...

a)

The government brings in more revenue than it spends for a given year

b)

The government spends more money than it brings in for a fiscal year

7.

Monetary Policy is the Federal Reserve Systems attempt to...

a)

control the amount of money in circulation

b)

control the Federal Government's debt

c)

control state governments' spending

d)

none of these answers are correct.

8.

Increase in the national debt would be caused by

a)

increasing govt. spending and increase taxes

b)

increasing govt. spending and decrease taxes

c)

decreasing govt. spending and increase taxes

d)

increase interest rates and decrease the money supply

9.

During a period of recession the best action would be

a)

increase the money supply and lower interest rates

b)

decrease govt. spending and decrease taxes

c)

decrease the money supply and increase govt. spending

d)

increase interest rates and decrease the money supply

10.

What is the equation of GDP?

a)

C + I + (X+N)

b)

C + I + G

c)

C + I + G + (X-N)

d)

C + G + U + (X+N)

11.

Which of the following is the best measurement of economic growth?

a)

Nominal GDP

b)

Real GDP

c)

GDP per Capita

d)

Real GDP per capita

12.

What is GDP divided by the size of the population?

a)

Nominal GDP

b)

GDP per capita

c)

The labour force participation rate

d)

GDP deflator

13.

What is the total value of all final goods and services produced in the economy calculated using the prices of a selected base year?

a)

Nominal GDP

b)

Real GDP

c)

Real GDP per capita

d)

GDP per capita

14.

What does this calculate?

(Nominal GDP ÷ real GDP) x 100

a)

Real GDP

b)

The unemployment rate

c)

GDP deflator

d)

GDP

15.

Cars, TVs, computers belong in which part of the GDP formula?

GDP = C+I+G+(X-M)

a)

Consumption Expenditure

b)

Investment

c)

Government Spending

d)

Net imports

16.

A general rule of thumb says that a country has experienced a recession if:

a)

Real GDP has declined.

b)

GDP has declined.

c)

Nominal GDP has declined for at least two consecutive quarters.

d)

Real GDP has declined for at least two consecutive quarters.

17.

This is a tax that where you pay more the more money you make

a)

Regressive

b)

Proportional

c)

Progressive

d)

Flat

18.

If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is

a)

decreasing taxes.

b)

decreasing spending.

c)

decreasing the money supply.

d)

decreasing the reserve requirement.

19.

When the government spends more money than they take in each year is called a _________?

a)

Debt

b)

Deificit

c)

Surplus

d)

Expansionary

20.

This is a tax where you pay less the more money you make

a)

Progressive

b)

Regressive

c)

Proportional