WorksheetsFP1 Final Exam Rev. Part 5
Total questions: 31
Worksheet time: 16mins
Which are used in the calculation of the gross domestic product?
land titles
net exports
Interest rates that rise and fall by a wide range on a regular basis often are an indication of:
seasonal unemployment
economic instability
price equilibrium
flexible capital
Gross domestic product that has been adjusted for inflation is known as:
real GDP.
capital goods.
GDP per capita.
aggregate demand.
Businesses purchasing items for resale are exempt from sales tax. This helps to prevent what problem when measuring the GDP?
double counting
recording bartering
underground
In calculating GDP, economists try to avoid double counting because it would:
A. cause legal problems.
B. inflate the value of GDP.
C. lower the standard of living.
D. increase the price of products.
The period of time during the business cycle when production and employment increase is called a/an:
contraction
expansion
peak
trough
Japan and the U.S. buy and sell each other’s goods and services. This is an example of:
exporting
importing
global trade
What is domestic trade?
Trade withing the country
Trade with multiple countries
Trade with countries on the same continent
An insurance appraiser:
A. determines repair costs for insurance claim settlements.
B. processes applications for insurance policies and any requested changes to these policies.
C. reviews individual applications for insurance to evaluate the degree of risk involved.
How can the general state of the economy affect a stock's price?
I doesn't affect stock prices
It only has a negative affect.
It only has a positive affect
It can have a negative or positive affect
Which is an economic condition that consumer spending usually measures?
competition
depreciation
employment
How can an investment counselor help a client to make wise investment choices?
by providing detailed market analysis
by filtering out poor investments
by bringing together a balanced portfolio
by making investment information available to the public
High levels of inflation often have a negative effect on a business's:
credit rating.
import quota.
purchasing power.
secondary market.
What do bond yields typically do during an economic expansion?
increase
drop to
For calculating the gross domestic product, wages paid to U.S. military personnel are categorized as:
private investment
consumer spending
government purchases
personal consumption
When interest rates continue to increase to a high level, the economy might experience a/an:
expansion
liability
recession
shortage
When nominal gross domestic product (GNP) rises, the money supply typically:
increases.
decreases.
When consumer purchasing power decreases, the economy will experience a period of:
A. containment.
B. contraction.
C. emergence.
D. expansion.
Which is a company-specific influence on a stock price?
Interest Rate
Industry
New Product
World Event
What is a possible cause of a change in economic conditions?
change in supply or demand
change in management
government action
investor activity
During periods of economic expansion, businesses are likely to:
reduce their profits.
stop hiring workers.
increase their profits.
A large number of underemployed workers indicates a problem in the economy, because underemployment means that:
many people have stopped looking for work.
there are insufficient jobs for qualified people.
seasonal employees work only part of the year.
some
One factor that has stimulated financial globalization is the increase in:
protectionism
foreign regulation
domestic competition
investment preferences
When the Consumer Price Index (CPI) increases sharply, stock prices usually:
rise
stay the same
How does a bull market affect a stock's price?
rise
stay the same
fluctuate daily
rise
How does a bull market affect a stock's price?
by avoiding investment scams
by encouraging product purchases
by discouraging product purchases
Stocks whose prices rise higher, or fall lower, than the market as a whole are referred to as:
efficient
influential
successful
volatile
The U.S. produces widgets faster and more cheaply than Switzerland does. In this example, the U.S. has which type of economic advantage?
competitive
When an emerging market suffers an economic decline, foreign investors usually:
help the emerging market to recover economically.
pay less for each transaction in the emerging market.
quickly withdraw their investments.
invest more to stabilize the market.
Choose the correct word: A. comparative B. constructive C. predictable D. unpredictable
comparative
constructive
predictable
unpredictable
What type of order restriction lets a broker know the order will expire at the end of the trading day?
day order
all or none
fill or kill order
good 'til canceled
