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WorksheetsMID TERM EXAM
Total questions: 55
Worksheet time: 1hrs 20mins
A shoe produced in South Korea and sold in the U.S.
Included in U.S. GDP
Included in South Korea GDP
Included in Canadian GDP
A higher GDP generally correlates to a(n) ___________ standard of living.
higher
lower
unrelated
Is this counted in the GDP of the US?
Cars made by a Japanese company in California.
Yes
No
In which part of the GDP calculation does this fit?
The US military spends $5 billion on five new helicopters.
Consumer spending
Government spending
Investment spending
Net exports
What is the total value of all final goods and services produced in the economy in a given year?
Unemployment rate
Supply and Demand
GDP
Communism
In which part of the GDP calculation does this fit?
You spend $15 at AMC to see the latest Avengers movie.
Consumer spending
Government spending
Investment spending
Net exports
Capital refers to...
The "gifts of nature" or natural resources not created by human effort.
people with all their efforts and abilities
the tools, equipment, and factories used in production of goods and services
individuals who start a new business or bring a product to market.
Entrepreneurs are...
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
The "gifts of nature" or natural resources not created by human effort.
the tools, equipment, and factories used in production of goods and services
A product or service is scarce when
The amount available is not enough to meet the demands of society
The amount available can satisfy the demands of society
Its price far exceeds the value of the item.
One company is responsible for producing the product.
WHAT ARE THE 4 FACTORS OF PRODUCTION?
Land, Capital, Need & Want
Land, Labor, Capital, Entrepreneurs
Water, Air, Food & Shelter
Land, Capital, Good & Service
WHAT IS LABOR?
work people do for pay to produce good and services
actions people do for other people
any physical object
The money people get for inheritance
Steve Jobs the founder of Apple is holding up an I-phone. What is another name for someone who starts a business?
capital
entrepreneur
land
labor
Which of the below is not scarce resource?
Oil
Sea water
Natural gas
Gold
A hurricane caused a shortage at the store of water bottles. There is not enough for everyone to buy. The store changed the price. What do you think happened to the price?
The price went higher.
The price went lower
As the price of an item goes down, the demand for it tends to go
up
down
stays the same
What will happen to the price of shoes if shoe producers have to pay higher wages to their workers?
The price will increase
The price will decrease
__________ refers to a decrease in price level.
Hyperinflation
Disinflaation
Deflation
Stagflation
cost value
purchasing power
importance
validity
Why is the minimum wage now higher than the minimum wage when your dad was your age?
Because more people go to college
Because the population has increased
Because price inflation has caused wage inflation
Employers are nicer now than they used to be
When the economy experiences an expansion, it is most likely the case that
GDP is increasing, unemployment is increasing, and inflation is decreasing
GDP is decreasing, unemployment is decreasing, and inflation is increasing.
GDP is increasing, unemployment is decreasing, and inflation is increasing
GDP is decreasing, unemployment is decreasing, and inflation is decreasing.
GDP is an important economic measurement because it
provides valuable data on unemployment rates.
provides valuable data on inflation rates.
measures the value of final goods and services produced by a country.
measures only the exports of a country
What term is used to describe the percent of the labor force that does not have a job but is currently looking for one?
Leading economic indicator
Full employment
Unemployment rate
workforce
Increasing unemployment and decreasing GDP is a sign of what part of the Business Cycle?
Expansion
Recovery
Prosperity
Recession
The business cycle is made up of how many phases?
5
4
3
2
If a news headline says, "Finally!!! 3 straight months of increased jobs and positive consumer confidence,"
which period on the business cycle is being reference?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
If a news headline says, "After 6 straight years of growth, is the economy at a TURNING POINT?"
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
If a news headline says, "3 months of consecutive job losses is negatively impacting consumer confidence,"
what period on the business cycle is being referenced?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
Business cycle has four phases:
expansion, peak, contraction, trough
peak, expansion, concept, decline
contraction, peak, expansion, uprise
trough, peak, decline, uprise
What is the term for the money used to buy the tools and equipment used in production?
Capital
Entrepreneurship
Labor
Land
What is the term for the total value of all goods and services produced within a country in a given period?
Gross Domestic Product (GDP)
Net Domestic Product (NDP)
Gross National Product (GNP)
Net National Product (NNP)
What happens to the demand for a product when its price increases?
Demand increases
Demand decreases
Demand remains the same
