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National Economy Quiz

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Which of the following are counted toward GDP?

a)

Stocks

b)

A five-year old care sold online

c)

Unsold products created by a business

d)

The government paying teachers

e)

Getting your nails done

2.

What is the difference between fiscal and monetary policy?

a)

Monetary policy is controlled by the Federal Reserve while fiscal policy is controlled by the federal goverment

b)

They are affectively the same thing

c)

Monetary policy is controlled by the federal government while fiscal policy is controlled by the Federal Reserve

d)

Fiscal policy was invented by Teddy Roosevelt while monetary policy was invented by Franklin Roosevelt

3.

Definition: Refers to a sustained period of increased prices

a)

CPI

b)

GDP

c)

Business Cycle

d)

Inflation

4.

Marsha went to college and just graduated with a degree in biology. Now she's working at a local fast food restaurant. How do economists describe her situation?

a)

Unemployed

b)

Underemployed

c)

Seasonal Employment

d)

Disappointing

5.

GDP is used to measure a country's....

a)

inflation

b)

skilled labor

c)

economic performance

d)

labor force

6.

The highest and lowest points of a business cycle are referred to as...

a)

expansion and contraction

b)

underperforming and overperforming

c)

undertow and currents

d)

peaks and troughs

7.

One of the most important things the Fed can do is...

a)

set tax brackets

b)

control inflation

c)

advise the government

d)

make economic rules

8.

Fiscal policy includes:

a)

no change of policy at all

b)

increasing exports and imports

c)

changing taxation and government spending

d)

decreasing the size of the government and economic policies

9.

The natural rate of unemployment is ideally somewhere between 3-10%

a)

True

b)

False

10.

Use the following information to calculate the unemployment rate.

Currently employed: 75

No job, but looking for work: 5

Total population: 500

a)

10%

b)

1%

c)

6.25%

d)

3.33%

11.

A recession is:

a)

A period of economic decline that lasts two consecutive quarters.

b)

A period of economic expansion that lasts two consecutive quarters. 

c)

The very top of the business cycle.

d)

When government gets too involved in the economy.