NEW
Font size
WorksheetsUnit 5 Economic Measurements
Total questions: 35
Worksheet time: 1hrs 9mins
The goal of macroeconomics is to
Become a better decision maker by learning how the whole economy works.
the part of economics concerned with single factors and the effects of individual decisions
What is something that macroeconomics does NOT study?
Economic output
Individual economic decisions
Unemployment
Inflation
What is NOT an economic goal of policymakers?
Ensure that people make enough money to pay for what they want to buy
Promote economic growth
Limit unemployment
Keep prices stable
What is NOT a measurement that economists analyze to see if a country is achieving its economic goals?
Gross Domestic Product
Unemployment Rate
Inflation Rate
Market Basket
When is an economy going into an economic recession?
3 months or one economic quarter of a downturn in the economy
6 months or two successive quarters of a downturn in the economy
One year or four successive quarters of a downturn in the economy
What is not a type of unemployment?
Frictional
Structural
A worker gets discouraged and quits trying to find a job
Cyclical
What is NOT a component of the GDP?
Consumer Spending
The unemployment rate
Government Spending
Net Exports
What is the GDP Per Capita?
the total value of goods and services produced in a country.
is an assessment of economic production in an economy but includes the current prices of goods and services in its calculation.
breaks down a country's economic output per person and is calculated by dividing the GDP of a country by its population.
What is not a main factor used to determine if a country is rich or poor?
Lack of natural resources
Number of cell phones its people have
Type of government
Level of technology
What is not a factor of production?
Land
Labor
Technology
Capital
What is a key element that has helped countries experience economic growth since the 1990’s
Becoming more environmentally friendly
More capital in the form of technology and the connectivity it allows
Declining population rate
How does rising prices effect a person’s wages?
There is no change to their wages
Allows them to buy more with their money
Allows them to buy less with their money
What is inflation?
An increase in prices and currency supply relative to the number of people using it
A decrease in prices and currency supply relative to the number of people using it
A surge in asset prices that are above the value of the asset
What is demand pull inflation?
When the availability of a resource decreases or when the cost of resources pushes the price higher
When unemployment increases
Too much money chasing too few goods
What caused the economic crisis in Germany in 1923, Hungary in 1946, and Zimbabwe in 2007?
Deflation
Inflation
Hyperinflation
Wars
When does hyperinflation begin in an economy?
When a county experiences a monthly inflation rate of 10% or less of inflation
When a county experiences a monthly inflation rate of 25% or less of inflation
When a county experiences a monthly inflation rate of 35% or less of inflation
When a county experiences a monthly inflation rate of 50% or less of inflation
Hyperinflation is caused by _____.
a recession in the business cycle
a rising unemployment rate
when a country prints too much money
What action would the Central Bank of the United States (FED) take if the economy was going into a recession?
Increase interest rates to discourage spending.
Do not change the interest rates
Decrease the interest rates to encourage spending
What is stagflation?
When the economy becomes stagnant but prices continue to rise
A general increase in prices over time
A general decrease in prices over time
Each of the following are economic goals for all countries EXCEPT
Promoting economic growth
Limiting unemployment
Preventing peaks in the business cycle
Keeping prices stable
The dollar value of all final goods and services produced within a country in one year is
inflation
gross domestic product
unemployment
demand
What are the 4 components of GDP?
Consumption, Investment, Government Spending, Net Exports
Consumption, Demand, Supply, Net Exports
Demand, Investment, Government Spending, Net Exports
Consumption, Supply, Exports, Imports
Jane takes her daughter out for a day of shopping. These transactions would be included in what component of GDP?
Consumption
Investment
Government spending
Net Exports
The United States defense department spends $5 million dollars to purchase new computers for the Pentagon. This transaction would be included in what component of GDP?
Consumption
Investment
Government spending
Net Exports
All of the following could result in economic growth EXCEPT
investing in human capital
the discovery of new natural resources
purchasing capital stock
decrease in factor productivity
The best measure of a nation’s standard of living is
real GDP
nominal GDP
productivity
real GDP per Capita
Changes in technology are most associated with which type of unemployment?
Frictional unemployment
Actuarial unemployment
Structural unemployment
Cyclical unemployment
Mary just graduated college and is looking for a job. What type of unemployment is she experiencing?
Frictional unemployment
Structural unemployment
Technological unemployment
Cyclical unemployment
When an economy is at the natural rate of unemployment, what type(s) of unemployment are present?
Only cyclical unemployment
Frictional and Structural unemployment
Frictional, structural, and cyclical unemployment
Frictional and cyclical unemployment
What phase of the business cycle is represented by the letter “E” of the illustration below?
Expansion
Peak
Recession
Trough
The key difference between nominal GDP and real GDP is that
nominal GDP adjusts for inflation
real GDP adjusts for inflation
nominal GDP is calculated using constant, unchanging dollars.
real GDP is calculated using the consumer price index
The most commonly used measure of economic growth in a country is
Nominal GDP
unemployment
inflation
real GDP
When the economy is working properly, what is the natural rate of unemployment for the U.S?
0 to 3 percent
4 to 6 percent
8 to 10 percent
10 to 12 percent
To calculate the change in prices from year to year, the Consumer Price Index measures the change in the total cost of the
real GDP
unemployment rate
nominal wages
market basket
The percentage change in prices from year to year is the
inflation rate
price index
GDP per capita
unemployment rate
