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POB Chapter 2.1 Review

Total questions: 30

Worksheet time: 16mins

Name
Class
Date
1.

____ is the total value of all final goods and services produced in a country during one year.

a)

Unemployment rate

b)

Gross domestic product

c)

Productivity

d)

Economic rate

2.

Economic growth refers to a steady decrease in the production of goods and services in an economic system.

a)

True

b)

False

3.

____ is the most widely used measure to find out how well an economy is doing.

a)

Inflation

b)

Gross Domestic Product

c)

Consumer Spending

d)

Capital Spending

4.

GDP is the total value of all finished goods and services produced in a country during one year.

a)

True

b)

False

5.

GDP includes which of the following categories: (select all that apply)

a)

Exports of a country less the imports into the country

b)

Inflation

c)

Business spending

d)

Consumer spending

e)

Government spending

6.

_____ includes spending for food, clothing, housing, and other goods & services.

a)

Consumer spending

b)

Exports

c)

Business spending

d)

Government spending

7.

GDP includes the value of the work that you do for yourself.

a)

True

b)

False

8.

_____ includes spending for buildings, equipment, and inventory items.

a)

Consumer spending

b)

Inflation

c)

Business spending

d)

Productivity

9.

Intermediate goods are included when measuring GDP.

a)

True

b)

False

10.

Steel produced in America and sold to an American automaker would NOT be included in GDP.

a)

True

b)

False

11.

If GDP increases from year to year, this usually signals that an economy is ____.

a)

in decline

b)

stable

c)

growing

d)

none of the above

12.

The more goods and services that are produced, the ____ an economy is considered to be.

a)

weaker

b)

healthier

c)

smaller

d)

none of the above

13.

____ refers to output per person.

a)

GDP

b)

GDP per country

c)

GDP per area

d)

GDP per capita

14.

Which of the following would not be included in GDP?

a)

exports to other countries

b)

purchases of computers by the government

c)

automobiles purchased

d)

dinner preparation for your family

15.

Productivity would likely increase as a result of _____.

a)

new technology

b)

higher taxes

c)

higher interest rates

d)

decreased training programs

16.

Retail sales include ____.

a)

company buying a new building

b)

borrowing by businesses

c)

school supplies bought by students

d)

taxes collected

17.

Workers of a country contribute to the economy when they produce needed goods and services.

a)

True

b)

False

18.

Workers of a country contribute to the economy when they spend their wages on various products.

a)

True

b)

False

19.

The ____ is the portion of people in the labor force who are not working.

a)

employment rate

b)

employment wage

c)

unemployment wage

d)

unemployment rate

20.

Janie recently resigned from her job to stay at home with her children. In this scenario, Janie ______ the unemployment rate.

a)

would be counted in

b)

would not be counted in

c)

increases

d)

decreases

21.

____ is the production output in relation to a unit of input.

a)

GDP

b)

GDP Per Capita

c)

Productivity

d)

Retail Sales

22.

Which of the following can lead to increased productivity? (select all that apply)

a)

Improvements in capital resources

b)

Improvements in worker training

c)

Improvements in employee wages

d)

Improvements in management techniques

23.

Higher productivity is vital for an economy.

a)

True

b)

False

24.

_____ is the training of workers to do a specific task.

a)

Productivity

b)

GDP

c)

Unemployment Rate

d)

Specialization of Labor

25.

Division of Labor causes _____ productivity.

a)

inefficiency, which lowers

b)

efficiency, which increases

c)

inefficiency, which increases

d)

efficiency, which lowers

26.

The money you earn and spend is one of the least important factors for economic growth.

a)

True

b)

False

27.

_____ refers to salaries and wages, as well as investment income and government payments.

a)

Personal income

b)

Retail sales

c)

Productivity

d)

GDP per capital

28.

Sales of durable and nondurable goods bought by consumers is known as ____.

a)

Personal Income

b)

Wholesale Sales

c)

Retail Sales

d)

Productivity

29.

Which of the following would NOT be included in retail sales?

a)

gasoline

b)

clothing

c)

automobiles

d)

taxes collected

30.

Which of the following would cause an increase in GDP?

a)

Government increases taxes on consumers

b)

Foreign government puts a tax on American-produced goods

c)

Americans decide to buy more Japanese-made vehicles

d)

Government hires people to build a new bridge along Interstate 49