WorksheetsChapter 2 Business
Total questions: 30
Worksheet time: 20mins
One component of gross domestic product is the value of a country’s exports less the value of the imports into the country.
True
False
A recession is a long period of high unemployment, weak consumer sales, and business failures.
True
False
The money for capital projects comes from three main sources: stock investments, bonds, and personal savings.
True
False
Business cycles are the recurring ups and downs of gross domestic product.
True
False
The more goods and services produced, the healthier an economy is considered to be.
True
False
Economic growth refers to a steady increase in the production of goods and services in an economic system.
True
False
During periods of deflation, prices drop so supply increases greatly.
True
False
If intermediate goods were counted as a part of gross domestic product (GDP), the value of these goods would be counted twice.
True
False
There has never been a true depression in the United States.
True
False
Recovery is a business cycle that is very rare.
True
False
A stock represents debt for an organization.
True
False
GDP measures a country’s economic output during
five years.
one week.
one year.
one month.
GDP does not include
the value of the work you do for yourself.
consumer spending for food.
government spending to pay employees.
business spending for equipment.
__________________ occurs at the peak of the business cycle.
Prosperity
Recession
Recovery
Depression
Retail sales
indicate general consumer spending patterns in the economy.
include the sales of services bought by businesses.
usually remain stable in times of economic growth.
all of the above are correct.
Which of the following is NOT a characteristic of a depression?
a prolonged period of high unemployment
high demand for goods and services
GDP falls rapidly
business failures
Dividing GDP by the total population of a country results in that country’s
unemployment rate.
GDP per capita.
gross GDP rate.
personal income per capita.
The major influence on the level of interest rates is
the supply and demand for money.
the rate of inflation.
the unemployment rate.
the consumer price index.
If GDP growth slows for at least _________________ quarter(s) in a calendar year, the economy is probably in a recession.
4
1
3
2
Which economic measure is the percentage of people in the labor force who are willing to work, are looking for work, but are unable to find work?
unemployment rate
retail sales
consumer price index
GDP
A ______ occurs when a government spends less than it takes in.
Budget deficit
Budget shortage
Budget surplus
Budget over-run
(a) is a period in the business cycle when demand begins to decrease, businesses lower production, and GDP growth slows for two or more quarters of the calendar year.
(a) is an increase in the general level of prices.
The movement of the economy from one condition to another and back again is called a business (a) .
Retail sales include the sales of durable and nondurable goods bought by (a) .
The portion of people in the labor force who are not working but are looking for work is the (a) rate.
Which of the following is NOT a component of GDP?
Consumer spending
Government spending
Net exports
Stock market investments
What does it mean if a country's GDP is increasing?
The country is experiencing deflation
The country's economy is shrinking
The country's economy is growing
The country's unemployment rate is increasing
If an economy has increasing GDP, low unemployment rate, and increasing inflation, what is happening?
It is in a slowdown
The Government needs to fix the unemployment rate
The FED should expand the money supply
The economy is in an expansion phase of the business cycle
