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WorksheetsMacroeconomics Review Quiz
Total questions: 13
Worksheet time: 12mins
What are Porter's 5 Forces used for?
Stock analysis
Industry analysis
Price analysis
Consumer analysis
What unemployment rates are the best?
No unemployment rates are ideal.
Low but not too low unemployment rates are ideal.
High unemployment rates are ideal.
What causes economic growth?
The stock market and indexes
Increased demand and supply
Savings and investments
GDP and GNP
How do interest rates affect the economy? (2)
Lower interest rates = more economic growth and higher inflation
Higher interest rates = more economic growth and higher inflation
Lower interest rates = less economic growth and less inflation
Higher interest rates = less economic growth and less inflation
What is a metric we can use to calculate inflation and deflation?
CPI
GDP and GNP
Stocks
Porter's 5 Forces
What is the difference between simple and compound interest? (2)
Simple interest is based only on an asset's principal amount.
Compound interest is based only on an asset's principal amount.
Simple interest is based on an asset's principal amount and the interest it collects every period.
Compound interest is based on an asset's principal amount and the interest it collects every period.
What is the MAIN difference between inflation and deflation?
Deflation is much rarer than inflation in an economy.
Deflation is more helpful to the economy than inflation.
Inflation decreases purchasing power ($10 buys less today than in the past), while deflation increases purchasing power.
Deflation decreases purchasing power ($10 buys less today than in the past), while inflation increases purchasing power.
What is the difference between GDP and GNP?
GNP measures value of all the goods produced within a country's borders, while GDP measures value of all the goods made by a country's citizens.
Finding GDP is more complex than finding GNP.
GDP measures value of all the goods produced within a country's borders, while GNP measures value of all the goods made by a country's citizens.
What is a shortcoming of CPI? (3)
Does not reflect the fact that consumers substitute products with others and buy less expensive goods.
The CPI only measures price changes from certain industries.
CPI has a hard time keeping up with new technology.
CPI cannot measure quality changes in products over time
What are interest rates? (2)
Interest rates? What interest rates?
They are expressed as percentages.
Interest rates are the amount someone charges for the use of an asset.
Interest rates are the amount you have to pay when buying an asset.
What does GDP stand for and what does it measure?
Gross Domestic Product - Measures market value of goods and services only produced by a country's overseas residents.
Gross Domestic Product - Measures market value of all the goods and services produced only by the citizens of a country.
Gross Domestic Product - Measures market value of all the goods and services produced within a country's borders.
How do you find the unemployment rate?
Dividing the total number of people in the labor force by the number of unemployed people
Dividing the number of unemployed people by the total number of people in the labor force.
Multiplying the number of unemployed people by the total number of people in the labor force.
Subtracting the number of unemployed people from the total number of people in the labor force.
Which of these are part of Porter's 5 Forces?
Threat of substitutes
Bargaining power of suppliers
Bargaining power of the company
Threat of new entrants
