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AP Macroeconomics Unit 2 Quiz

Total questions: 25

Worksheet time: 16mins

Name
Class
Date
1.
What is being represented by the "green flow lines"
a)
Flow of Money
b)
Flow of Goods and Services
c)
law
2.
In the circular flow model, the product market describes _____.
a)
stores that sell goods and services to households
b)
the government paying for public goods
c)
households selling their labor to businesses
d)
households receive income from businesses
3.
In this market, businesses buy resources they need to produce goods and services.
a)
factor market
b)
stores
c)
product market
d)
 businesses
4.
The circular flow model of a market economy shows
a)
how profits are made
b)
what inputs are required for what outputs
c)
how many firms can support the needs of how many households
d)
the interactions between households and  firms in the free market
5.
What do businesses provide for consumers according to the circular flow model?
a)
goods and services
b)
only goods
c)
only services
d)
taxes
6.

What does government provide with the revenue it takes in from taxes?

a)

Headaches

b)

Public goods and services

c)

More Congressmen

d)

Greater control of the media

7.
In the circular flow model, consumption goods are bought and sold in the
a)
product market
b)
financial market
c)
resource market
d)
government market
8.
The circular flow model shows the
a)
distribution of income and consumption goods across income levels.
b)
combinations of the factors of production needed to produce goods and services.
c)
flow of expenditure and incomes that arise from the households' and business' decisions.
d)
distribution of income to the different factors of production.
9.

Is this counted in the GDP of the US?

Cars made by a Japanese company in California.

a)

Yes

b)

No

10.

Is this counted in the GDP of the US?

Cars made by a US company in South Korea.

a)

Yes

b)

No

11.

Is this counted in the GDP of the US?

A new home that was recently built.

a)

Yes

b)

No

12.

Is this counted in the GDP of the US?

A farmer's purchase of a new tractor.

a)

Yes

b)

No

13.

Is this counted in the GDP of the US?

A plumber's purchase of a two-year-old truck from Craigslist.

a)

Yes

b)

No

14.

In which part of the GDP calculation does this fit?

You spend $15 at AMC to see the latest Avengers movie.

a)

Consumer spending

b)

Government spending

c)

Investment spending

d)

Net exports

15.

In which part of the GDP calculation does this fit?

The US military spends $5 billion on five new helicopters.

a)

Consumer spending

b)

Government spending

c)

Investment spending

d)

Net exports

16.

In which part of the GDP calculation does this fit?

Australia exported $6 billion worth of goods in 2018, but imported $10 billion in goods.

a)

Consumer spending

b)

Government spending

c)

Investment spending

d)

Net exports

17.

If operators are fired and replaced with computer technology, the operators would be considered

a)

frictionally unemployed

b)

structurally unemployed

c)

cyclically unemployed

d)

dissatisfiededly unemployed dissatisfiededly unemployed

18.

The unemployment rate is the ratio of

a)

unemployed to labor force

b)

employed to labor force

c)

seeking employment to labor force

d)

dissatisfied to labor force

19.

The unemployment rate will drop if

a)

A person is hired into a new job

b)

Someone who was previously laid off is rehired

c)

An unemployed person stops looking

d)

ALL of these answers are CORRECT

20.

Which of the following best defines unemployment?

a)

The state of being able to work and actively seeking work, but unable to find employment

b)

The state of being able to work, but choosing not to

c)

The percentage of the labour force that is able and actively seeking work, but cannot find employment

d)

The total number of people who do not work

21.

When individuals lose jobs due to fall in aggregate demand, often during an economic recession.

a)

Structural Unemployment

b)

Cyclical Unemployment

c)

Frictional Unemployment

d)

Seasonal Unemployment

22.

Which of the following is not in the labor force?

a)

Charles, who wants to work but has given up looking for work until the weather improves.

b)

Mary, who works part-time but wishes for work full time.

c)

John, who has a graduate degree but is working as a waiter.

d)

Carl, who does not have work but applied for work at a local factory.

e)

Melissa, who just graduated from business school and is currently seeking employment as an accountant.

23.

What type of unemployment is a person experiencing when they are laid off during a recession?

a)

Frictional

b)

Seasonal

c)

Cyclical

d)

Structural

24.

What is it called when a worker takes a lower skilled job when they are overqualified to earn money to pay bills?

a)

A discouraged worker

b)

Underemployed worker

c)

A seasonal worker

d)

A structural worker

25.

You will always have this because people will always want to change jobs.

a)

frictional unemployment

b)

seasonal unemployment

c)

cyclical unemployment

d)

structural unemployment