WorksheetsUnit 3 Mastery Check
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Which of the following would be included in the US Gross Domestic Product (GDP)?
a)
Your midnight Taco Bell run of $4.53
b)
A $10 birthday check from your grandmother
c)
Apple buying microchips for the next iPhone
d)
Purchasing 1 share of Tesla stock
2.
How is real GDP different from nominal GDP?
a)
Real GDP is adjusted for inflation
b)
Real GDP is NOT adjusted for inflation
c)
Nominal GDP is the average GDP per person
d)
They are the same thing
3.
Which of the following is the MOST accurate measurement of economic growth for a country?
a)
Real GDP per capita
b)
Real GDP
c)
Nominal GDP
d)
Nominal GDP per capita
4.
How do we calculate Real GDP per capita?
a)
Real GDP/Total population
b)
Nominal GDP - Real GDP
c)
Price x Quantity
d)
Real GDP x Total Population
5.
Which of the following is the BEST indication of standard of living?
a)
Nominal GDP
b)
Real GDP
c)
Real GDP per capita
d)
Nominal GDP per capita
6.
The Consumer Price Index (CPI) measures:
a)
The percentage change in the price of a basket of goods and services consumed by households
b)
The percentage change in the quantity of goods and services produced in a country
c)
The percentage change in the amount of goods and services produced by firms
d)
The percentage change in the price of a country's exports and imports
7.
Which of the following is the best definition of inflation?
a)
An increase in the general level of prices in the economy
b)
A decrease in the general level of prices in the economy
c)
A decrease in the quantity of goods and services produced in the economy
d)
An increase in the quantity of goods and services produced in the economy
8.
The inflation rate is defined as:
a)
The percentage increase in the quantity of goods and services produced in the economy
b)
The percentage increase in the price of a basket of goods and services consumed by households
c)
The percentage increase in the price of a basket of goods and services produced by firms
d)
The percentage increase in the number of unemployed individuals in the economy
9.
When the inflation rate is positive, which of the following is true?
a)
The purchasing power of money decreases
b)
The purchasing power of money increases
c)
The value of money remains constant
d)
The value of money becomes negative
10.
Which of the following best explains the concept of purchasing power?
a)
The amount of money that can be earned through productive work
b)
The amount of money that a person has saved in the bank
c)
The amount of goods and services that can be purchased with a given amount of money
d)
The amount of money that a person owes to others.
11.
The unemployment rate is defined as:
a)
The percentage of the labor force that is not working
b)
The percentage of the population that is not working
c)
The percentage of the population that is working
d)
The percentage of the labor force that is working
12.
Which of the following is an example of cyclical unemployment?
a)
A construction worker who is laid off due to a slowdown in the housing market
b)
A teacher who takes a year off to travel the world (as if we could afford that)
c)
A retail worker who quits their job to go back to school
d)
A doctor who is fired for misconduct
13.
Which of the following is an example of structural unemployment?
a)
A computer programmer who loses their job due to outsourcing to another country
b)
A factory worker who is laid off due to a seasonal slowdown in production
c)
A store clerk who quits their job to pursue a career in music
d)
A waitress who is fired for being rude to customers
14.
The labor force participation rate is defined as:
a)
The percentage of the population that is working or actively seeking work
b)
The percentage of the population that is working
c)
The percentage of the population that is unemployed
d)
The percentage of the population that is retired
15.
How is the unemployment rate calculated?
a)
By dividing the number of unemployed workers by the total labor force
b)
By dividing the number of employed workers by the total labor force
c)
By dividing the number of employed workers by the total population
d)
By dividing the number of unemployed workers by the total population
16.
What is the business cycle?
a)
The cycle of economic growth and contraction
b)
The cycle of business formation and failure
c)
The cycle of government intervention in the economy
d)
The cycle of globalization and international trade
17.
What are the four phases of the business cycle?
a)
Expansion, peak, contraction, trough
b)
Growth, maturity, decline, renewal
c)
Rise, crest, fall, bottom
d)
Prosperity, recession, depression, recovery
18.
During which phase of the business cycle does real GDP grow the fastest?
a)
Expansion
b)
Peak
c)
Contraction
d)
Trough
19.
What is the primary economic indicator that is used to determine when the economy is in a recession?
a)
GDP rate
b)
Inflation rate
c)
Interest rates
d)
Unemployment rate
20.
During which phase of the business cycle does unemployment tend to be the highest?
a)
Trough
b)
Expansion
c)
Peak
d)
Contraction
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