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EPF U4 Quiz: GDP, Business Cycles, and Unemployment

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What are the three economic goals every society seeks to accomplish?

a)

full employment, stable prices, economic growth

b)

6% inflation, 10% unemployment, slow economic growth

c)

Everyone employed, control inflation, flat economic growth

d)

Promote economic growth, full unemployment, limit inflation

2.

What is the correct equation for GDP below?

a)

GDP = C + M + I + G

b)

GDP = C + I + G + (X-M)

c)

GDP = L + I + O + N

d)

GDP = Nx + Mx + C + M

3.

Net Exports are ...

a)

Imports divided by exports

b)

Exports minus Imports

c)

Imports minus Exports

d)

Exports divided by imports

4.

The most important measurement of a nations economic activity is...

a)

Employment Rate

b)

Population Control

c)

Gross Domestic Product

d)

Consumer Price Index

5.

All of the following add to a nation's GDP EXCEPT

a)

Items purchased at a grocery store

b)

Items imported from another Nation

c)

Services rendered for payment

d)

Government payouts for goods and services

6.

What are the four parts of the business cycle?

a)

Expansion - Peak - Sloth - Plummet

b)

Expansion - Retraction - Infraction - Sublaction

c)

Expansion - Peak - Recession - Trough

d)

Infraction - Trough - Recession - Peak

7.

The period of the business cycle characterized by Businesses decreasing production, unemployment rising, consumer spending decreasing, and a fall in inflation is

a)

Expansion

b)

Peak

c)

Recession

d)

Trough

8.

The highest point in the business cycle, characterized by low unemployment and high inflation is...

a)

Expansion

b)

Peak

c)

Contraction

d)

Trough

9.

In order to count towards the unemployment rate, you must ...

a)

Be actively searching for a job

b)

Be of a working age

c)

Be able to work

d)

All options are true

10.

When you are out of work because you have been replaced by a robot... that is...

a)

Structural (Technological Unemployment)

b)

Structural Unemployment

c)

Institutional Unemployment

d)

Frictional Unemployment

11.

If you divide the amount of unemployed workers by the total labor force and multiply by 100... this will give you

a)

The business cycle

b)

The current CPI

c)

The rate of inflation

d)

The Unemployment rate

12.

A private business purchasing machinery for it's production is WHAT FACTOR of GDP

a)

Consumer spending

b)

Investment

c)

Government Spending

d)

Exports

13.

An overall increase in imports will have what effect on GDP

a)

Increase GDP overall

b)

Decrease GDP overall

c)

Consistent GDP

d)

No impact on GDP

14.

If government regulations are causing employers to cut costs, and you are fired as a result... that is considered

a)

a law suit

b)

frictional unemployment

c)

cyclical unemployment

d)

Institutional Unemployment

15.

Cyclical unemployment most commonly occurs at what points in the business cycle

a)

Expansion/Recession

b)

Recession/Peak

c)

Trough/Recession

d)

Expansion/Trough