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Unit 4 - Measures of Economic Progress

Total questions: 23

Worksheet time: 23mins

Name
Class
Date
1.

If you are considered a part of the "labor force" you must be all of the following EXCEPT

a)

above 16 years old

b)

able and willing to work

c)

not in the military, a full-time student, or retired

d)

a college graduate

2.

What is macroeconomics?

a)

the study of choices of individuals and businesses

b)

the study of the economy as a whole

c)

the study of a country's politics

d)

the study of small-scale economic decisions

3.

Which of the following is NOT one of the three major economic goals?

a)

promote stable growth

b)

keep unemployment low

c)

develop strong tariffs

d)

limit inflation

4.

What does GDP measure?

a)

inflation

b)

economic growth

c)

unemployment rate

d)

supply and demand

5.

Which of the following is NOT counted in a country's GDP?

a)

government spending

b)

purchases of final goods & services

c)

business investments

d)

non-market or household items

6.

What is GDP per capita?

a)

the ratio of GDP per capital city in a nation

b)

the GDP of one nation compared to its neighbors

c)

GDP divided by population

d)

GDP adjusted for inflation

7.

What does GDP per capita attempt to measure?

a)

how many people live in the nation's capital

b)

the difference in GDP from year to year

c)

a nation's standard of living

d)

the inflation rate

8.

Which of the following is an example of an intermediate good?

a)

a new paint job done by a local body shop

b)

a used car purchased on Craigslist

c)

a brand new car purchased at a local car dealership

d)

the stock radio and tires on Mrs. Jamell's new Tesla Model X

9.

True or false? The business cycle goes up and down like a roller coaster over time. In the business cycle, there are times of expansion and times of contraction.

a)

True

b)

False

10.

A recession is 6 months of __________ GDP.

a)

growing

b)

decline in

11.

A recovery is 6 months of __________ GDP.

a)

growing

b)

decline in

12.

What is an example of seasonal unemployment?

a)

a football player when it's not Sunday Night

b)

a Yankee Candle Company worker who lives in the South

c)

a mall santa in the summer months

d)

someone whose job has been taken over by robots

13.

What is an example of a change in the labor force due to skills becoming obsolete (out-of-date or no longer needed)?

a)

frictional unemployment

b)

structural unemployment

c)

seasonal unemployment

d)

cyclical unemployment

14.

Nominal GDP is measured at current market prices. Which of the following does NOT take inflation (prices) into account and ONLY measures growth?

a)

real GDP

b)

GDP per capita

c)

gross GDP

d)

consumer price index

15.

Which of the following is NOT one of the three factors the Unemployment Rate fails to account for?

a)

stay at home moms

b)

discouraged workers

c)

part-time workers

d)

race and age inequalities

16.

Inflation is the rising general levels of prices and it reduces the ____________ of money.

a)

demand

b)

purchasing power

c)

investments

d)

consumer price index

17.

Who is HURT by unanticipated inflation?

a)

investors in stocks and gold

b)

fixed-rate mortagage holders

c)

the American economy

d)

owners of land and other physical assets

18.

If there is inflation, workers will need:

a)

a raise

b)

coffee and donuts in the breakroom

c)

longer lunch breaks

d)

direct deposit

19.

The inflation rate is the

a)

percent change in prices from year to year

b)

consumer price index

c)

purchasing power at one given point in time

d)

production cost for each country

20.

We started studying the whole economy after which event?

a)

the turn of the century

b)

the 2016 presidential election

c)

the Great Depression

d)

the start of WWI

21.

Steel workers being laid off during a recession, coffee baristas being fired after a period of slow business, and high unemployment during the Great Depression are all examples of which type of unemployment?

a)

structural unemployment

b)

cyclical unemployment

c)

frictional unemployment

d)

seasonal unemployment

22.

Choose all that apply. What can cause inflation?

a)

printing too much money (quantity theory)

b)

too much demand (demand-pull)

c)

fixed interest rates

d)

higher production costs (cost-push)

23.

The Business Cycle is a trade-off between which two of the following?

a)

GDP

b)

Inflation

c)

Unemployment

d)

Macroeconomics