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Economics - Economic Indicators & Business Cycle

Total questions: 16

Worksheet time: 10mins

Name
Class
Date
1.
All final goods and services that make up GDP can be expressed in the form:
a)
GDP = C + I - G + (X + M).
b)
GDP = C + I + G + (X + M).
c)
GDP = C + I + G + (X - M).
d)
GDP = C + I + (X - M).
2.

What is the definition for GDP?

a)

The market value of all final goods and services produced in a nation during a period of time, usually a year.

b)

The increase of general prices over time.

c)

When people do not have jobs and are actively looking for one.

3.

What is the definition for inflation?

a)

The market value of all final goods and services produced in a nation during a period of time, usually a year.

b)

The increase of general prices over time.

c)

When people do not have jobs and are actively looking for one.

4.

What is the definition for unemployment?

a)

The market value of all final goods and services produced in a nation during a period of time, usually a year.

b)

The increase of general prices over time.

c)

When people do not have jobs and are actively looking for one.

5.

What type of Unemployment is represented here?


Scenario: The economy is on the decline causing businesses to lay off employees

a)

Cyclical

b)

Seasonal

c)

Structural

d)

Frictional

6.

What type of Unemployment is represented here?


Scenario: Businesses purchase more technology for the sole purpose of laying off employees

a)

Cyclical

b)

Seasonal

c)

Structural

d)

Frictional

7.

What type of Unemployment is represented here?


Scenario: You are let go from Ritas because the Spring and Summer seasons have passed.

a)

Cyclical

b)

Seasonal

c)

Structural

d)

Frictional

8.

Over half of the spending of the _______________ include programs like Medicare, Social Security & Unemployment.

a)

Household Consumption/ C

b)

Business Investment/ I

c)

Government Purchases/ G

d)

Net Exports/ NX

9.

A company putting its money towards expanding its business. An example of this would be a construction company buying new trucks and other heavy equipment to improve production.

a)

Household Consumption/ C

b)

Business Investment/ I

c)

Government Purchases/ G

d)

Net Exports/ NX

10.

The largest spending category of GDP. This picture is a break down of all the things consumers spend their money on.

a)

Household Consumption/ C

b)

Business Investment/ I

c)

Government Purchases/ G

d)

Net Exports/ NX

11.

According to this image, the United States exported 200 billion in goods and services, and imported 150 billion. This category is what part of GDP?

a)

Household Consumption/ C

b)

Business Investment/ I

c)

Government Purchases/ G

d)

Net Exports/ NX

12.

What does Per Capita Mean?

a)

Per Household

b)

Per Object

c)

Per Worker

d)

Per Person

13.

GDP per capita is found by dividing a country's GDP by it's

a)

population.

b)

average birth rates.

c)

number of households.

14.

Business cycle has four phases:

a)

expansion, peak, contraction, trough

b)

peak, expansion, concept, decline

c)

contraction, peak, expansion, uprise

d)

trough, peak, decline, uprise

15.
What is happening to the economy in a period of economic contraction?
a)
GDP is rising and unemployment is falling.
b)
GDP is rising and unemployment is rising.
c)
GDP is falling and unemployment is rising.
d)
GDP is falling and unemployment is falling.
16.
This is unemployment because people are between jobs or who are looking for their first job:
a)
frictional
b)
structural
c)
seasonal
d)
cyclical