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Economics Unit 3 test

Total questions: 17

Worksheet time: 46mins

Name
Class
Date
1.

What is the main economic indicator that economists look at to analyze the state of a nation's economy?

a)

Net National Product

b)

Gross National Income

c)

Greater Domestic Production

d)

Gross Domestic Product

2.

What is the formula to calculate GDP? (no spaces)

(a)  

3.

Match the following expenses to their correct categories.

a)

Consumption

1.

Ms. Zgabay buys milk at the store.

b)

Investment

2.

A farmer buys a dairy cow.

c)

Government spending

3.

The Department of Transportation maintains the roads that transport dairy.

d)

Net exports

4.

The farmer sells his milk to a customer in Canada.

4.

Which type of GDP does not account for rising costs or inflation?

a)

Real

b)

Nominal

c)

Calculated

d)

Approximate

5.

Which of these would not be included in America's GDP calculations?

a)

Fabrics made in China and sold in Texas

b)

Computers made in the USA and sold in Canada

c)

A professional nanny that reports income to the IRS

d)

Home repairs that you hire someone to complete at your house

6.

Label each stage of the business cycle correctly.

7.

The United States has been able to avoid entering a stage of (a)   , which is six months in a row of a declining GDP.

8.

Reorder the following based on the order that they happen when it comes to predicting business cycles.

a)

Leading indicators

b)

Coincident indicators

c)

Lagging indicators

1)
2)
3)
9.

Which word is defined as "individuals and businesses producing a narrow range of products"?

a)

Economic interdepence

b)

Gross domestic product

c)

Exporting

d)

Specialization

10.

If the United States produces airplane parts and sells them in France, this is considered an ________ of the United States.

a)

Import

b)

Export

11.

If Mexico grows avocados and sells them in the United States, this is considered an ___________ of the United States.

a)

Import

b)

Export

12.

Tax on imported goods is known as

a)

Quota

b)

Tariff

c)

Embargo

d)

Licensing

13.

Match the following types of trade barriers to their definitions.

a)

Voluntary Export Restraint

1.

A country chooses to limit an export by appealing to companies

b)

Embargos

2.

A law cutting off most or all trade with a country

c)

Quotas

3.

Limits on the amount of a product that can be imported

d)

Informal Trade Barriers

4.

Naturally occuring barriers like land and health regulations

e)

Tariffs

5.

Fees charged for goods being brought into a country

14.

Put each Regional Trade Agreement in the area that they have authority in.

15.

During recessions all of the following usually happen EXCEPT

a)

inflation decreases

b)

unemployment increases

c)

GDP decreases

d)

GDP increases

16.

Intermediate goods, used goods, and illegal goods are ____________ in a countries Gross Domestic Product(GDP).

a)

included

b)

excluded

17.

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

a)

population.

b)

average birth rates.

c)

number of households.