WorksheetsEconomics Unit 3 Review
Total questions: 15
Worksheet time: 16mins
Biff, a lifeguard at the local YMCA, sleeps on his mom’s couch in November without a job. Biff is considered to be:
Frictionally unemployed
Seasonally unemployed
Structurally unemployed
Cyclically unemployed
Barrett finds himself to be out of a job when Chevrolet starts manufacturing spaceships instead of motor vehicles on their production line. He is among those who would be considered to be:
Frictionally unemployed
Seasonally unemployed
Structurally unemployed
Cyclically unemployed
During a deep economic recession in January, Santa Claus found himself to be out of a job. He is among those who are also:
Frictionally unemployed
Seasonally unemployed
Structurally unemployed
Cyclically unemployed
As of July 2016, ____ is an example of a country currently experiencing excessive inflation (rise of price levels).
United States of America
Japan
India
Venezuela
Using the graph of the business cycle, select the point that would show the economy beginning to recover from a recessionary trend.
A
B
C
D
An economy can only grow if it can increase its output. Which of the following will grow an economy?
Workers are better educated.
Machines are more efficient.
Businesses increase the amount of money they spend on training workers.
All of the above will grow the economy because they will increase productivity.
Businesses investing in capital stock (i.e., machines, technology, robots, etc.) will affect the economy in which of the following ways:
It will increase the economy’s potential output level, thus resulting in an increase in GDP and overall growth of the economy.
This investment will lead to an overall slowing of the economy, thus pushing the country into a recession.
There will be no change in the overall growth rate of the economy, because only consumer spending can grow the economy.
None of the above.
What is a fiscal policy decision a city could make in order to make itself more appealing to companies?
Increase sales tax.
Increase the retirement plans for city employees.
Lower residential property taxes.
Lower corporate taxes.
All of the following are ways the government receives revenue EXCEPT:
Income taxes
Social security taxes
Defense expenditures
Medicare taxes
During an economic downturn (recession), the U.S. Congress can try to stimulate the economy through:
Monetary policy
Trading policy
Fiscal policy
Antitrust policy
During an economic downturn (recession), the U.S. government can try to stimulate the economy best by:
Increasing spending and lowering taxes
Increasing spending and raising taxes
Reducing spending and lowering taxes
Reducing spending and raising taxes
Top of the business cycle is called what?
apex
crest
trough
peak
Provide situational examples of when one might experience each type of unemployment. (cyclical, frictional, structural, and seasonal)
Progressive tax
tax rate increases as taxable income increases
same tax rate to every taxpayer regardless of income bracket
Flat tax
tax rate increases as taxable income increases
same tax rate to every taxpayer regardless of income bracket
