WorksheetsEPF Unit 2: MacroEconomics
Total questions: 32
Worksheet time: 1hrs 8mins
Read the scenario and determine if this is INCLUDED or NOT INCLUDED in the GDP for the United States: Your mom makes $75 selling all the clothing that you have outgrown at a neighborhood garage sale.
Included in GDP
Not included in GDP
Can not determine with the information provided
Read the scenario and determine if this is INCLUDED or NOT INCLUDED in the GDP for the United States: You buy a new pair of jeans at a local clothing store.
Included in GDP
Not included in GDP
Can not determine with the information provided
what does GDP stand for:
(a)
The Business Cycle measures ___ over time.
wealth
inflation
economic growth
If a news headline says, "Finally!!! 2 straight months of increased jobs."
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 impacting consumer confidence."
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
Which of the following is an expansion, or recovery?
A
B
C
D
Which of the following best describes the circular flow of income and expenditure?
The circulation of resources within the production process
The impact of taxation on consumer spending
The movement of money between households and firms in an economy
The exchange of goods and services between countries
In economics, what is inflation?
The decrease in the general level of prices over time
A sustained increase in the average level of prices
The rate at which the value of a currency depreciates
An increase in the buying power of money
WHO BENEFITS AND WHO LOSES WHEN UNEXPECTED INFLATION OCCURS?
creditors benefit; debtors lose
creditors lose; debtors benefit
The consumer price index measures
the cost of buying a fixed basket of goods and services, and calculating how this cost changes from year to year
the cost of buying a basket of goods and services, which changes from year to year depending on the price level
the cost of buying a basket of goods and services, which changes from year to year depending on consumer tastes and preferences
all of the above, depending on what the CPI is trying to measure
What causes inflation?
inflation occurs when there's an increase in production costs OR when demand for products and services increases faster than supply
inflation occurs when there's an increase in production costs OR when demand for products and services increases slower than supply
inflation occurs when there's a slower increase in production costs OR when demand for products and services increases faster than supply
What can the government do to slow the economy in order to reduce inflation?
lower taxes
raise taxes
spend more
The action by the FED to adjust the size of the money supply, and to adjust interest rates in order to keep prices down and employment high.
fiscal policy
monetary policy
Taxing and Spending are tools of
fiscal policy
monetary policy
If the Federal Reserve wanted to stimulate the U.S. economy and reduce unemployment, it would
cause interest rates to decrease because low interest rates encourage business growth and expansion
cause interest rates to rise because high interest rates encourage business growth and expansion
increase the discount rate it charges banks, which would increase the money supply
increase consumer spending by reducing the money supply
Government plays the role of Regulator to protect the United States that includes
Investors
Workers
Consumers
Environment
All of these
SEC, Security & Exchange Commission regulates
US Banking
Employee Rights
Safety of Food
Environment
Sale of Stocks
The Fed, Federal Reserve System, regulates
US Banking System
Employee Rights
Safety of Food
Environment
Sale of Stocks
The FDA, Food & Drug Administration regulates
US Banking System
Employee Rights
Enforces recalls on food
Environment
Sale of Stocks
The EPA, Environmental Protection Agency regulates
US Banking System
Employee Rights
Enforces recalls on food
Land and ocean
Sale of Stocks
The FTC, Federal Trade Commission, regulates
US Banking System
Employee Rights
consumer protection
Environment
Sale of Stocks
The IRS, Internal Revenue Service, regulates
tax revenue collection
Employee Rights
consumer protection
Environment
Sale of Stocks
Export means ...
to get rid of the goods you don't need.
sending a product to another country for sale.
to get more goods to be able to make more money.
bringing a product into a country to be sold.
What is a trade deficit?
When the value of exports exceeds the value of imports
when the value of imports exceeds the value of exports
when the values of imports and exports are equal
when the value of imports for one nation is greater than the value of imports for another nation
What is a trade surplus?
when the value of exports exceeds the value of imports
when the value of imports exceeds the value of exports
when the values of imports and exports are equal to each other
when the value of money greater than the amount of goods and services imported
A tax on imported goods.
import
export
tariff
sanction
Protects infant industries, hurts domestic workers, labor standards are not the same, and to protect national security.
Arguments against free trade
arguments for free trade
arguments for military
arguments for intelligence
Increases competition, allows domestic goods to be sold all over the world, allows country to expose comparative advantage through specialization.
arguments against free trade
arguments for free trade
military policy
intelligence policy
