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Econ Unit 3: Macroeconomics

Total questions: 40

Worksheet time: 40mins

Name
Class
Date
1.

Which of the following goods would be included when calculating the U.S.'s GDP?

a)

A BMW manufactured in Alabama

b)

A bike bought in China

c)

Goodwill clothes

d)

An illegal exotic animal

2.

Which of the following goods would NOT be included in the U.S.'s GDP?

a)

A coffee from Starbucks

b)

A coffee you make at home

c)

Road repairs in Pima County

d)

A Lyft ride

3.

Which is a final good/service?

a)

Concrete mix purchased by a construction company

b)

Pizza toppings at Pizza Hut

c)

Steel purchased by Ford Motors

d)

12 dozen Dunkin Doughnuts

4.

Type of unemployment: People lack skills that the job market demands.

a)

structural

b)

frictional

c)

cyclical

d)

seasonal

5.

Type of unemployment: Computer programmer moves to San Francisco & looks for a job.

a)

structural

b)

frictional

c)

cyclical

d)

seasonal

6.

In an economy like the U.S., when the economy is working properly, the unemployment rate is...

a)

0 - 2%

b)

10 - 12%

c)

8 - 10%

d)

3 - 5%

7.

Unemployment type?: A lawyer leaves her job at a small firm to look for a job at a large firm

a)

structural

b)

frictional

c)

cyclical

d)

seasonal

8.

Unemployment type?: An Umpa Lumpa lost their job at Willy Wonka's Factory during a recession

a)

structural

b)

frictional

c)

cyclical

d)

seasonal

9.

Business failures, decreased consumption, & an increase in unemployment are indicators of...

a)

a recovery

b)

a wartime economy

c)

a recession

d)

prosperity

10.

Full employment means a 0% unemployment rate.

a)

True

b)

False

11.

Fiscal Policy (taxes & gov't spending) is conducted by...

a)

the Treasury department

b)

the Federal Reserve

c)

the IRS

d)

Congress

12.

If the price of goods from Wal-Mart cost more now than in January, inflation has...

a)

decreased

b)

stayed the same

c)

stagnated

d)

increased

13.

1 sign that the economy is in a recession is...

a)

increase in business production

b)

consumer spending drops

c)

consumer spending increases

d)

unemployment drops

14.

Type of unemployment: Sam works for Cool River Tubing. He has to find another job in the winter

a)

structural

b)

frictional

c)

cyclical

d)

seasonal

15.

When inflation occurs, the buying power of the dollar will...

a)

increase

b)

remain stable

c)

decrease

16.

The process the Fed uses to control the supply & availability of money.

a)

fiscal policy

b)

the discount rate

c)

monetary policy

d)

the interest rate

17.

What is the name of the central bank of the U.S.?

a)

Bank of the U.S.

b)

The Federal Reserve

c)

U.S. Congressional Bank

d)

Bank of America

18.

What is the main reason the Fed would raise the interest rate?

a)

loosen credit

b)

encourage job creation

c)

lower the deficit

d)

stop rising inflation

19.

People who have given up looking for work are called?

a)

Discouraged workers

b)

Sad workers

c)

Teen workers

d)

Disabled workers

20.

All of the following are NOT counted in the labor force, EXCEPT FOR...

a)

Prisoners

b)

Active Duty Members

c)

Stay at home parents

d)

An unemployed teacher

21.

What is the largest source of revenue for the federal government?

a)

income tax

b)

corporate tax

c)

war bonds

d)

property tax

22.

Which part of GDP: Your family goes out for dinner tonight.

a)

Consumer Spending

b)

Investment Spending (Business spending)

c)

Government Spending

d)

Exports

e)

Imports

23.

Which part of GDP: Costco builds a new store in Wyoming.

a)

Consumer Spending

b)

Investment Spending (Business spending)

c)

Government Spending

d)

Exports

e)

Imports

24.

Which part of GDP: The AZ Department of Education builds a new school in Tucson.

a)

Consumer Spending

b)

Investment Spending (Business spending)

c)

Government Spending

d)

Exports

e)

Imports

25.

Which part of GDP: Everyone buys the new iPhone, made overseas.

a)

Consumer Spending

b)

Investment Spending (Business spending)

c)

Government Spending

d)

Exports

e)

Imports

26.

Which part of GDP: International students return to American college campuses.

a)

Consumer Spending

b)

Investment Spending (Business spending)

c)

Government Spending

d)

Exports

e)

Imports

27.

Negative externalities are:

a)

Costs imposed on market participants

b)

Costs imposed on 3rd parties

c)

Benefits imposed on 3rd parties

d)

Benefits imposed on market participants

28.

If you drive a car, external costs are imposed on other people who live in the city, such as:

a)

Air pollution

b)

Safe roads

c)

Cost of car insurance

d)

Cost of gas

29.

What positive impacts could a football stadium have?

a)

Trash left after the games

b)

Noise pollution during the games

c)

Football hooligans

d)

It brings money to the local shops & services

30.

Which of the following is NOT a negative externality?

a)

2nd hand smoke

b)

Gassy cows

c)

Herd immunization

d)

Over fishing

31.

What is the GDP for this country?

a)

$2,000 Billion

b)

$3,100 Billion

c)

$2,300 Billion

d)

$1,900 Billion

32.

What is the GDP for this country?

a)

$2,600 Billion

b)

$3,000 Billion

c)

$2,000 Billion

d)

$3,600 Billion

33.

What is the GDP per capita for a country with a GDP of $3,300 billion, & a population of 2 billion people?

a)

$6,400

b)

$1,650 billion

c)

$6,400 billion

d)

$1,650

34.

What is the GDP per capita for a country with a GDP of $8,400 billion, & a population of 42 million people (0.42 billion)?

a)

$20,000

b)

$20,000 billion

c)

$200 billion

d)

$200

35.

Which is considered "good inflation"?

a)

-1% to 0%

b)

1% to 3%

c)

3% to 5%

d)

0%

36.

In which market structure is there the LEAST competition?

a)

Monopoly

b)

Oligopoly

c)

Monopolistic Competition

d)

Perfect Competition

37.

In which market structure is there the MOST competition?

a)

Monopoly

b)

Oligopoly

c)

Monopolistic Competition

d)

Perfect Competition

38.

The jeans industry would fall into what type of market structure? ( jeans are similar but there are some differences in the product)

a)

Monopoly

b)

Oligopoly

c)

Monopolistic Competition

d)

Perfect Competition

39.

List the four market structures in order from LEAST competitive to MOST competitive.

a)

Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition

b)

Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly

c)

Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition

d)

Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly

40.
This market structure has 3-4 firms who dominate 70-80% of the industry. 
a)
Monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
Oligopoly