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Economics Review

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

The examination of specific product and resource markets and the behavior of individual decision-making units such as consumers, firms and resource owners belongs to:

a)

International Economics

b)

Macroeconomics

c)

Microeconomics

2.

The most important macroeconomic objectives involve how to achieve:

a)

Full employment

b)

A stable rising price level

c)

Economic growth

d)

Equitable distribution of income

e)

All of the above

3.

The (a)   shows that in any given time period (say a year), the value of output produced in an economy is equal to the total income generated in producing that output, which is equal to the expenditures made to purchase that output.

4.

Savings, taxes & imports are an example of:

(a)  

5.

How many approaches exist to measure economic activity?

a)

2

b)

1

c)

4

d)

3

6.

The formula to calculate GDP by using the expenditure approach is:

(a)  

7.

The GNI is measured by using the following formula:

a)

GNI = GDP + Net income

b)

GNI = GDP - Net income

c)

GNI = GDP - environmental costs

d)

None of the above

8.

The difference between real GDP and nominal GDP is that real GDP is adjusted by:

(a)  

9.

The phases of the business cycle are:

a)

Peak, expansion, contraction & potential GDP

b)

Peak, expansion, contraction & trough

c)

Peak, expansion, contraction, trough, leakages and injections

d)

None of the above

10.

The total quantity of aggregate output, or real GDP, that all buyers in an economy want to buy at different possible price levels, ceteris paribus is known as:

(a)