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Worksheets

Economic

Total questions: 39

Worksheet time: 20mins

Name
Class
Date
1.

Macroeconomics involves the study of the.....

a)

Cost and production decisions made by firms

b)

Different market structures that exist in the economy

c)

Individual decision makers in the economy

d)

Overall Behavior of the economy

2.

Economics deals primarily with the concept of.....

a)

Money

b)

Poverty

c)

Scarcity

d)

Supply and Demand

3.

Products that would be used in calculating GDP include......

a)

Toys manufactured in China at factory owned by a US company

b)

Cars manufactured in Tennessee at a factory owned by a Japanese

c)

IDK

d)

IDK

4.

The calculation of GDP would include......

a)

The sale of a 25 year old house

b)

The income of a person who pays rent by babysitting for the home owners children

c)

The Income of a high school English teacher

d)

The Price of the steel used to build a new hotel.

5.

Which of the following best represents the equation for GDP?

a)

GDP=C+B+G-X+IM

b)

GDP=C+I+G+X-IM

c)

GDP+C+I+G+Taxes-Value Added

d)

GDPGDP=C+I+G+Taxes+X+IM

6.

In the United States, consumer spending accounts for approximately what percentage of GDP?

a)

50%

b)

60%

c)

70%

d)

80%

7.

An example of a durable good would be....

a)

A used car

b)

A pair of socks

c)

A box of cereal

d)

Toilet Paper

8.

An example of a nondurable good is.....

a)

A new car

b)

A used car

c)

A pair of socks

d)

A washing machine

9.

GDP expressed in constant, or unchanging prices is called.....

a)

Real GDP

b)

Price Level

c)

Normal GDP

d)

Net national product

10.

Nominal GDP is.....

a)

The inflation adjusted GDP

b)

The real GDP minus depreciation

c)

The current dollar GDP

d)

The constant dollar GDP

11.

Which of the following would NOT be included in this year's GDP?

a)

The production of a television show

b)

The purchase of a new work truck

c)

The hiring of a new police officer

d)

Your purchase of your neighbor's 2010 Toyota

12.

Define the word aggregate.....

a)

Macro

b)

Total or "sum of"

c)

Complete

d)

Micro

13.

The stage in a business cycle when real GDP stops falling is.....

a)

Expansion

b)

The peak

c)

A recession

d)

The trough

14.

The lowest point in an economic contraction is called.....

a)

A peak

b)

A trough

c)

A recession

d)

A depression

15.

Four factors both expected and unexpected that can affect the business cycle. Which of the following is NOT one of these factors?

a)

A Business investments

b)

Interest rates and credit

c)

supply and demand

d)

External shocks

16.

A laptop computer purchased by an accounting firm is considered to be....

a)

Consumption spending

b)

Investment spending

c)

Private saving

d)

A transfer of income

17.

The main economic variables that affect business cycles include all of the EXCEPT......

a)

Interest rates

b)

External events

c)

Personal savings levels

d)

Business Investment levels

18.

Which of the following economic activities does NOT illustrate the limitations of calculating GDP?

a)

Non-Market Activities

b)

Negative externalities

c)

The underground economy

d)

Depreciation

19.

Which of the following transactions would be included in the nation's gross domestic product?

a)

A college student buys a used textbook from his roomate.

b)

A construction company purchases lumber to use in building a new home

c)

A college student has a pizza delivered to her dorm room

d)

A group of high school students volunteer to rake leaves at an assisted living facility for senior citizens.

20.

Which of the following is an example Intermediate good?

a)

A pair of shoes at the mall

b)

Lumber purchased to build a house

c)

A fee paid to real estate agent for the sale of a house

d)

A new car

21.

Which of the following is included in GDP

a)

The purchase of a 100 shares

b)

The purchase of a 1965 Ford Mustang

c)

Social Security payments from the US government to retired people

d)

The purchase of a ticket to a Lady Gaga concert

22.

An Italian company opens a shoe factory in the US. The production from this shoe company is included in.....

a)

The Italian GDP

b)

The US GDP

c)

Both Italian and US GDP

d)

Both the Italian and US GDP split 50/50

23.

Which of the following is the best definition of GDP?

a)

The total dollar value of all final goods and services produced in the economy

b)

NO

c)

NO

d)

No

24.

What is a business cycle?

a)

A period of increased economic growth

b)

A period of economic growth followed by economic contraction

c)

The Amount of time it takes a business to produce its products

d)

A dangerous time for all businesses

25.

All of the following are examples of a durable good EXCEPT a...

a)

Refrigerator

b)

Pair of sneakers

c)

DVD player

d)

Sofa

26.

What is the best measure of nation's standard of living

a)

Real GDP per capita

b)

Population

c)

Savings

d)

National income

27.

What is a recession?

a)

A period when GDP is negative for at least 6 months

b)

A long and severe depression

c)

A very mild and short expansion

d)

A period when the economy is neither expanding nor contracting

28.

Recessions...

a)

Are a thing of the past

b)

A very severe depressions

c)

Are marked by a sustained decline in output

d)

Are typically accompanied by falling unemployment

29.

Business investment, interest rates and credits, consumer expectations, and external shocks are the flour factors that affect.....

a)

Gross National Product

b)

GDP

c)

The business cycle

d)

Real GDP

30.

Stagflation is a combination of...

a)

Increasing unemployment and increasing inflation

b)

Decreasing unemployment and decreasing inflation

c)

Increasing unemployment and decreasing inflation

d)

Decreasing unemployment and increasing inflation

31.

An economy's gross domestic product is made up of....

a)

Consumption, saving, Investment and government spending

b)

Consumption, investment, government spending and net exports

c)

Consumption saving inventories financial markets and government spending

d)

Consumption and saving

32.

Which one of the following transactions will be included in the official measurement of GDP?

a)

Brandon sold his house at a huge gain

b)

Brock illegally downloaded movies to his laptop

c)

Memrie won the state lottery

d)

Olivia bought the new iPhone 14.

33.

Which of the following would NOT be a part of GDP?

a)

New residential construction

b)

used care sales

c)

A new truck purchased by a builder contractor

d)

Telephone service purchased for a home

34.

An example of investment spending is...

a)

The amount of funds raised by the government in the financial markets

b)

The purchase of government bonds by a private household

c)

The purchase of a freezer by an ice-cream parlor

d)

The purchase of stock shares by a mutual fund

35.

A recession leads to all of the following EXCEPT...

a)

Higher unemployment

b)

Reduced output

c)

Reduced income and living standards

d)

Higher employment

36.

In a typical business cycle the business cycle trough is immediately followed by the...

a)

Business cycle peak

b)

Recession

c)

Depression

d)

Expansion

37.

When an economy is in an expansion, unemployment....

a)

Tends to fall and overall prices tend to rise

b)

Tends to fall and overall prices tend to fall

c)

Tends to rse and overall prices to fall

d)

Tend to rsie and overall prices tend to rise

38.

An increase in aggregate demand in seen as an....

a)

Shift to the right in the aggregate demand curve

b)

Downward movement along the aggregate demand curve

c)

Upward movement along the aggregate demand curve

d)

Shift to the left in the aggregate demand curve

39.

A decrease in aggregate demand is seen as an....

a)

Downward movement along the aggregate demand curve

b)

Upward movement along the aggregate demand curve

c)

Shift to the left in the aggregate demand curve

d)

Shift to the right in the aggregate demand curve