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Chapter 12 "Economic Indicators and Measurements"

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Before Adam Smith, many people believed that economic growth was caused by

a)

technology and innovation

b)

population growth and higher taxation

c)

natural resources and capital

d)

technology and innovation

2.

The idea that national wealth comes through exporting more goods than a country imports is called

a)

imperialism

b)

colonialism

c)

mercantilism

d)

capitalism

3.

The Great Depression ended when

a)

the New Deal was enacted

b)

the United States entered World War II

c)

Franklin D. Roosevelt became president

d)

federal funding increased

4.

The contraction of the mid-1970s was triggered in part by the

a)

Oil Embargo of 1973

b)

Steel Strike of 1975

c)

Coal Strike of 1976

d)

Cotton Embargo of 1974

5.

Which of the following is an example of a leading indicator?

a)

length of unemployment

b)

personal income

c)

sales volume

d)

consumer expectations

6.

An example of a coincident indicator is

a)

personal income

b)

stock prices

c)

orders for consumer goods

d)

length of unemployment

7.

Measures of economic performance that usually change after real GDP changes are called

a)

subsequent indicators

b)

leading indicators

c)

lagging indicators

d)

coincident indicators

8.

Which of the following is considered to be a nondurable good?

a)

a refrigerator

b)

a restaurant meal

c)

a cell phone

d)

a dental exam

9.

GDP that is stated in the price levels for the year in which the GDP was measured is called

a)

yearly GDP

b)

real GDP

c)

nominal GDP

d)

fiscal GDP

10.

In the United States, the severe contraction that started in 1929 is commonly called the

a)

Great Contraction

b)

Great Crash

c)

Great Recession

d)

Great Depression

11.

The total amount of goods and services that households, businesses, government, and foreign purchasers will buy at each price level is called

a)

absolute demand

b)

overall demand

c)

total demand

d)

aggregate demand

12.

The highest point of a business cycle is called the

a)

peak

b)

apex

c)

pinnacle

d)

trough

13.

Which of the following often happens during a contraction?

a)

Resources become more scarce, and prices fall.

b)

Resources become less scarce, and prices fall.

c)

Resources become more scarce, and prices rise.

d)

Resources become less scarce, and prices rise.

14.

An extended period of high unemployment and limited business activity is called a

a)

peak

b)

trough

c)

depression

d)

stagflation

15.

The total income earned in a nation from the production of goods and services in a given time period is called

a)

state income

b)

national income

c)

federal income

d)

government income

16.

An example of a non-market activity is

a)

buying food for a birthday party

b)

performing one's own home repairs

c)

selling stocks that have declined in value

d)

opening a very small business

17.

The underground economy includes market activities that

a)

involve earth excavation, such as mining

b)

are reported by nonprofit organizations

c)

go unreported by nonprofit organizations

d)

are reported by the government

18.

Inventory investment is made up of

a)

unsold goods that businesses have on hand

b)

goods that businesses have already sold

c)

goods that businesses plan to acquire

d)

capital goods, such as equipment

19.

An example of a durable good is a(n)

a)

chocolate bar

b)

truck

c)

disposable camera

d)

apple

20.

The market value of all final goods and services produced within a nation in a given time period is called

a)

national income product

b)

national domestic product

c)

gross income product

d)

gross domestic product

21.

Demand deposits are

a)

certificates of deposit

b)

checking accounts

c)

money market accounts

d)

savings accounts

22.

What type of money is issued by the United States government?

a)

fiat money

b)

representative money

c)

near money

d)

commodity money

23.

One of the physical properties of money is

a)

acceptability

b)

scarcity

c)

stability of value

d)

portability

24.

One of the economic properties of money is

a)

durability

b)

uniformity

c)

scarcity

d)

divisibility

25.

A money that can be saved without losing its value over time acts as a

a)

fiat money

b)

medium of exchange

c)

store value

d)

standard of value