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Worksheets

ITB Ch 3 Test Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which one is NOT one of the 4 business cycles?

a)

Prosperity

b)

Recession

c)

Depression

d)

Recovery

e)

Poverty

2.

What is the formula for calculating the unemployment rate?

a)

# unemployed / # in labor force * 100

b)

# employed / # in labor force * 100

c)

# unemployed / # people in US * 100

3.

What does GDP stand for?

a)

Green Damage Poverty

b)

Gross Domestic Product

c)

Gross Domestic Profit

d)

Gosh Darn People

4.

Which one is NOT one of the 4 types of unemployment?

a)

seasonal

b)

temporary

c)

industrial

d)

cyclical

e)

not wanted

5.

Who satisfies public wants?

a)

Mr. Ruggieri

b)

The government

c)

Schools

d)

Big Business

6.

Why does the US currently have a higher standard of living than in the past?

a)

GDP Grew

b)

GDP Shrank

c)

It doesn't

7.

What is the national debt?

a)

The total amount of money the government owes

b)

When the government spends more than they bring in in taxes

c)

budget deficit

8.

What is the difference between inflation and deflation?

a)

Inflation is when price rises, while prices fall with deflation

b)

Deflation is when price rises, while prices fall with inflation

c)

They are the same thing

9.

If there is an increase in demand (shift to the right), what happens to the equilibrium quantity and price?

a)

Increases

b)

decreases

10.

Which one is NOT one of the 4 factors of production?

a)

Human resources

b)

Natural Resources

c)

Labor Resources

d)

Plastic resources

11.

What is the difference between a recession and depression?

a)

a recession is more severe and lasts longer

b)

a depression is more severe and lasts longer

c)

they are the same thing

d)

a depression comes immediately after prosperity in the cycle

12.

Economic indicators are used to measure a ____________ financial performance at the end of the year.

a)

Country

b)

Company

c)

Business

d)

states

13.

Given the change in the U.S. unemployment rate over the past two years, which phase of the business cycle would you say the U.S. is currently experiencing?

a)

Recession

b)

Prosperity

c)

Recovery

14.

Inflation reduces the purchasing power of money.

a)

True

b)

False

c)

.

d)

.

15.

A rise in business activity after a recession or depression is called the _____________ .

a)

Recovery

b)

Depression

c)

Recession

d)

Prosperity

16.

People will probably cut back on spending during a(n) ______________.

a)

Recession

b)

Prosperity

c)

Depression

17.

What does downsizing cause?

a)

Unemployment

b)

Budget Surplus

c)

Inflation

d)

National Deficit

18.

What is the term for figures used to measure economic performance?

a)

Economic Indicators

b)

GDP

c)

National Numbers

d)

Business Cycle

19.

How long did the Great Depression Last?

a)

About 10 years

b)

4 years

c)

2 years

d)

6 months

20.

Every business cycle includes a depression.

a)

True

b)

False

c)

.

d)

.