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Unit 3 Quiz Review

Total questions: 13

Worksheet time: 10mins

Name
Class
Date
1.
What type of GDP is calculated with the current year's prices?
a)
Nominal GDP
b)
Real GDP
c)
GDP per capita
2.
Expectant parents buy supplies for the nursery.  Would this be included in GDP? 
a)
Yes - Consumer Spending
b)
Yes - Investment 
c)
No - Intermediate goods
d)
No - Non-market activity
3.

Is this counted in the GDP of the US?

Cars made by a Japanese company in California.

a)

Yes

b)

No

4.

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

5.

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

6.

Most countries try to maintain an inflation rate of ______ per year.

a)

One percent or less

b)

Two to three percent

c)

Four to five percent

d)

Six to seven percent

7.
When inflation is high the _______________of the dollar decreases
a)
cost value
b)
purchasing power
c)
importance
d)
validity
8.
An index that measures the prices of a market basket of goods that typical consumers purchase.
a)
Consumer Price Index
b)
Federal Reserve
c)
Bank
d)
Deflation
9.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
10.

The Business Cycle measures ___ over time.

a)

wealth

b)

inflation

c)

economic growth

11.

GDP declines during a(an)

a)

peak

b)

contraction

c)

expansion

12.

____________ refers to the total value of final goods and services which all the sectors of an economy are planning to buy at a given level of income during a period of one accounting year.

a)

aggregate demand

b)

aggregate supply

13.

_____________ refers to the money value of goods and services that all the producers are willing to supply in an economy in a given time period.

a)

Aggregate demand

b)

Aggregate supply