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Econ Unit 2 Exam

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the largest influence on a family's purchasing power?

a)

GDP

b)

Inflation

c)

Stock value

d)

Trade balance

2.

What is a healthy level of unemployment?

a)

3-6%

b)

7-9%

3.

What measure inflation?

a)

Consumer price index (CPI)

b)

Gross domestic product (GDP)

4.

What measures economic growth?

a)

CPI

b)

GDP

5.

The GDP of a Canada would most likely be affected by which of the following?

a)

An increase in Canadian companies moving to America

b)

A decrease in American productivity

6.

Which of the following people is considered to be unemployed?

a)

Clay lost his job and gave up looking for work

b)

Becca graduated from college and is looking for her first job

7.

What is the NYSE?

a)

A measure of a country's total GDP.

b)

A stock market where shares are bought and sold

8.

What measures the value of 30 large publicly traded companies in the US?

a)

NYSE

b)

Dow Jones

9.

Which of the following would represent an economic contraction?

a)

GDP going down

b)

Inflation remaining stagnant

c)

Unemployment going down

d)

The Dow Jones Index going up

10.

True or False: investing in multiple companies minimizes the risk of investing in stocks

(a)  

11.

What comes after a trough?

a)

Expansion/recovery

b)

Contraction/recession

12.

During an economic contraction, unemployment rate would...

a)

Rise

b)

Fall

13.

When would consumer confidence increase?

a)

During an expansion

b)

During a contraction

14.

What is the largest stock market in the world?

a)

NYSE

b)

NASDAQ

15.

How does an investor make money off a stock purchase?

a)

Dividends

b)

Capital appreciation