WorksheetsUnit 5 Quiz
Total questions: 13
Worksheet time: 7mins
What are the four phases of the business cycle?
Expansion, Peak, Contraction, Trough
Introduction, Growth, Maturity, Decline
Start, Middle, End, Restart
Boom, Bust, Recovery, Recession
Does Nominal GDP take inflation into consideration?
Yes
No
Only in certain conditions
Depends on the country
Does Real GDP take inflation into consideration?
Yes
No
Only in certain conditions
Depends on the country
Which of the following goods would not be counted towards a country’s GDP?
A car manufactured domestically
A loaf of bread sold in a local store
A used car sold privately
A new smartphone produced locally
The pie chart below gives information on the GDP of the United States in 2022. Based on the data, which of the following makes up the smallest percentage?
Goods sold to other countries.
Consumer spending on final goods.
Goods bought from other countries.
Business spending on new factories and machinery.
Which of the following best describes investment spending?
Spending by businesses on new factories and machinery.
Buying stocks and bonds to add to your portfolio.
Going to college to invest in your education.
Spending on new factories and machinery by the government.
How is unemployment rate calculated?
(Unemployed / Population) x 100
(Unemployed / Labor Force) x 100
(Labor Force / Population) x 100
(Population / Unemployed) x 100
Given the information below, what is the unemployment rate of the country?
66%
6%
100%
10%
Josephine is a recent college graduate from a prestigious university. She is currently looking for her first job and is interviewing with law firms in New York City. Josephine would be classified as which type of unemployed worker?
A. Frictionally unemployed
B. Structurally unemployed
C. Cyclically unemployed
D. Not considered unemployed
Which of the following scenarios best describes inflation?
A. Overall prices are decreasing due to a lack of demand and unemployment.
B. Prices of stocks are increasing due to speculation and a booming stock market.
C. Overall prices are increasing due to an increase in the amount of money.
D. Prices of automobiles are rising due to a shortage of computer chips.
How does inflation typically affect borrowers and lenders?
A. Borrowers benefit from inflation because they repay loans with money that has less purchasing power.
B. Borrowers are hurt by inflation because they must repay loans with higher interest rates.
C. Lenders benefit from inflation because they receive repayments in money that has increased value.
D. Lenders are unaffected by inflation because their interest rates are fixed.
Carlos has a fixed income of $2,000 per month. Over the last year, the inflation rate has risen by 5%, causing the prices of groceries, utilities, and transportation to increase. How does inflation affect Carlos in this scenario?
A. Carlos's purchasing power increases, allowing him to buy more goods.
B. Carlos's purchasing power decreases, making it harder to afford the same goods.
C. Carlos's income increases by 5% to match inflation.
D. Carlos is unaffected by inflation because his income is fixed.
Which of these does a Lorenz curve compare?
The relationship between supply and demand in different industries
The growth rate of different sectors in the economy
The fluctuation of prices over time in an economy
The distribution of income or wealth among households within an economy
