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9.5 Warm Up (EPF)

Total questions: 12

Worksheet time: 7mins

Name
Class
Date
1.
What is the 1st economic goal of each country?
a)
Limit Inflation
b)
Limit Unemployment
c)
Promote Economic Growth
d)
Measure expenditures
2.

GDP measures the:

a)

Total market value of intermediate goods and services produced by the citizens of a country in a given year.

b)

Total market value of all final goods and services produced in an economy in a given year.

c)

Change in total employment at U.S. owned firms over the course of a given year.

d)

Change in production levels at U.S. owned firms measured quarterly.

3.
GDP is calculated by
a)
adding up the cost of goods used in producing the item
b)
subtracting all costs from total revenue
c)
adding consumption + investment +government spending+ (exports sold - imports bought)
4.

The US military purchases new protective equipment. Is this included in GDP?

a)
Yes - Consumer spending
b)
Yes - Government Spending
c)

No - public transfer payments

d)
No - Non-market activity 
5.

Which of the following is NOT a phase of the business cycle?

a)

Expansion

b)

Contraction

c)

Neutral

d)

Peak

e)

Trough

6.

The Business Cycle measures ___ over time.

a)

wealth

b)

inflation

c)

economic growth

7.
High levels of GDP per capita indicate...
a)
Higher levels of happiness 
b)
Higher standard of living
c)
Equal levels of wealth 
d)
Self-sufficient communities
8.

Real GDP is same as

a)

real GNP

b)

exports minus imports

c)

GDP with price adjustments

d)

GDP at current prices

9.
Which is a final product in a bakery?
a)
Cake
b)
Flour
c)
Eggs
d)
Sugar
10.
What type of GDP is calculated with the current year's prices?
a)
Nominal GDP
b)
Real GDP
c)
GDP per capita
11.

Which of the following is the best measurement of economic growth?

a)

Nominal GDP

b)

Real GDP

c)

GDP per capita

d)

Real GDP per capita

12.

Two people on food stamps $300 a month for food.  Is this included in GDP?

a)
Yes - Government spending
b)
Yes - Consumer Spending
c)
No - Intermediate Goods
d)

No - Public Transfer Payment