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EPF Unit 2 Review

Total questions: 20

Worksheet time: 16mins

Name
Class
Date
1.

what does GDP stand for:

a)

Great Domestic Products

b)

Gross Distributed Product

c)

Gross Domestic Product

d)

Great Distributed Product

2.

Gross Domestic Product includes the market value of all FINAL goods and services produced within a country during a given period of time.

a)

True

b)

False

3.

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

a)

included

b)

excluded

4.

GDP measures the:

a)

Total market value of intermediate goods and services produced by the citizens of a country in a given year.

b)

Total market value of all final goods and services produced in an economy in a given year.

c)

Change in total employment at U.S. owned firms over the course of a given year.

d)

Change in production levels at U.S. owned firms measured quarterly.

5.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
6.

What is the primary function of the Federal Reserve?

a)

To regulate the stock market

b)

To control the nation's money supply and stabilize the economy

c)

To manage the national debt

d)

To oversee the banking industry

7.

The federal government's overall approach to spending and taxes is called

a)

The Federal Open Market Committee

b)

Fiscal Policy

c)

The Federal Reserve

d)

Monetary Policy

8.
The manipulation of the money supply in order to influence the cost and the availability of credit is 
a)
Banking Policy
b)
Fiscal Policy
c)
Monetary Policy
d)
Spending Policy
9.

In order to be considered part of the civilian labor force, what are the two main requirements?

a)

Be at least 21 years old and have a history of poor job performance.

b)

Be at least 18 years old and have participated in high school sports.

c)

Be at least 16 years old and actively looking for work.

d)

Be at least 45 years old and have given up on finding a job.

10.
Point at which supply and demand come together
a)
price ceiling
b)
excess demand
c)
equilibrium
d)
disequilibrium
11.
When quantity supplied exceeds quantity demanded at a certain price.
a)
shortage
b)
fad
c)
search costs
d)
surplus
12.
When quantity demanded exceeds quantity supplied at a certain cost
a)
shortage
b)
fad
c)
search costs
d)
surplus
13.
Equilibrium in a market means which of the following?
a)
the point at which quantity supplied and quantity demanded are the same
b)
the point at which unsold goods begin to pile up
c)
the point at which suppliers begin to reduce prices
14.

Which statement describes the law of demand?

a)

As prices rise, quantity demanded decreases

b)

As prices rise, demand decreases.

c)

As prices fall, quantity demanded decreases.

d)

As prices fall, demand decreases.

15.

The amount of a good or service that producers are willing and able to sell at all possible prices during a given period of time.

a)

Supply

b)

Demand

c)

Factor of Production

d)

Production

16.

What is the Equilibrium Price?

a)

1

b)

2

c)

3

d)

4

17.
A person who buys goods and services
a)
consumer
b)
entrepreneur
c)
resource
d)
currency
18.
How much people want something
a)
supply
b)
demand
19.

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

a)

Peak

b)

Contraction/Recession

c)

Trough

d)

Expansion/Growth/Recovery

20.

The Business Cycle charts...

a)

the ups and downs of an economy

b)

series of stages in the economy as it expands and contracts.

c)

the periodic growth and decline of a nation’s economy, measured mainly by its GDP (Gross Domestic Product).

d)

All of the above