WorksheetsDr Week 5 MCQ+Ans+Explanation key indicators& economic cycles
Total questions: 16
Worksheet time: 8mins
Which of the following is included in GNP but not in GDP?
The value of a Honda made in the US.
The value of a Honda made in Japan by a US company.
The value of the insurance policy covering a Honda in the US.
The value of the parts used to repair a Honda in the US.
The value of the commission on the sale of a Honda in the US.
When jobs are relatively abundant, which of the following can be healthy for a growing economy?
Rise in the number of individuals in transfer payment programs
Underutilization of the employed
Frictional unemployment
Cyclical unemployment
Discouraged workers
Providing training for unemployed individuals will help to alleviate
structural unemployment.
seasonal unemployment.
national unemployment.
cyclical unemployment.
The amount of ________ increases when the economy goes into a recession and decreases when the economy goes into an expansion.
structural unemployment
seasonal unemployment
cyclical unemployment
frictional unemployment
Demand-pull inflation occurs when
aggregate demand exceeds aggregate supply at the current price level.
aggregate supply decreases while aggregate demand remains constant.
the price of raw materials increases.
the money supply decreases.
During one period in the 1970s, it appears that aggregate demand in the United States was relatively stable and aggregate supply was shifting leftwards. Which of these best describes what the economy was experiencing?
Deflation
Hyperinflation
Demand-pull inflation
Stagflation
The Consumer Price Index (CPI) measures
the average price of all goods and services produced in the economy.
the average price of a basket of goods and services consumed by a typical urban household.
the average price of goods and services sold by businesses.
the average price of investment goods.
Each of the following describes economic growth, or some feature of economic growth, except:
Outward shifts of the production possibilities curve
Improvements in labor productivity
Increases in the quality of capital stock per person
Leftward shifts of the aggregate supply
Steady percentage increases in real GDP
If we designate the bottom of the business cycle as phase one, the four phases of the business cycle, in order, are:
recovery, peak, recession, recession.
recovery, recession, peak, recession.
peak, upturn, recession, recession.
trough, recession, peak, recovery.
trough, recovery, peak, recession.
The Phillips curve traces a set of combinations of rates of
interest and unemployment.
real GDP and inflation.
real GDP and interest.
unemployment and inflation.
The long-run Phillips curve is vertical at
zero unemployment.
zero frictional unemployment.
the natural rate of unemployment.
the natural rate of inflation.
The Lorenz curve is used to measure
income inequality.
economic growth.
inflation.
unemployment.
A Gini coefficient of 0 indicates
perfect income equality.
perfect income inequality.
high inflation.
high unemployment.
Goods and services purchased by one business from another and treated as inputs are called what by economists?
Consumer goods and services
Inventory
Taxes
Intermediate goods
Final goods and services
Economists say that investment occurs when
someone buys stock on the New York Stock Exchange.
someone buys a U.S. government bond.
a firm increases its capital stock.
a government buys goods from another country.
A severe and prolonged recessionary phase of a business cycle is sometimes described as
an inverted peak.
a trough.
a recession.
a depression.
