Presentation is loading. Please wait.

Presentation is loading. Please wait.

Test Review.

Similar presentations

Presentation on theme: "Test Review."— Presentation transcript:

1 Test Review

2 Business Cycle #1 A steady, long-term increase in real GDP is
economic growth. a depression. a peak. a recession.

3 Business Cycle #2 A period of economic growth as measured by a rise in real GDP is a(n) A. business cycle. B. peak. C. contraction. D. expansion

4 Business Cycle #3 A prolonged economic contraction that is not especially long or severe is referred to as a A. depression. B. recession. C. stagflation. D. trough.

5 Business Cycle #4 What is a business cycle? A. a period of increased economic growth B. a period of economic growth followed by economic contraction C. the amount of time it takes a business to produce its products D. a dangerous time for all businesses

6 Business Cycle # 5 What is a recession?
A period when real GDP falls for at least 6 month A long a severe depression A mild and short expansion

7 Business Cycle #6 The stage in a business cycle when real GDP stops falling is A. expansion. B. the peak. C. contraction. D. the trough.

8 GDP Review # 1 GDP expressed in constant, or unchanging, prices is referred to as A. real GDP. B. nominal GDP. C. aggregate supply. D. aggregate demand.

9 GDP Review #2 The total amount of goods and services in the economy available at all possible price levels is the A. gross national product. B. gross domestic product. C. aggregate demand. D. aggregate supply.

10 GDP # 3 Suppose an economy's entire output is automobiles. In Year 1, the country's real GDP is $300,000 and all manufacturers in the economy produce cars at $15,000 each. In Year 2, all manufacturers produce cars at $16,000 each. What is the real GDP in Year 2, if 20 cars are produced? A. $300,000 B. $320,000 C. $20,000 D. $280,000

11 GDP #4 Goods used in the production of final goods are Durable goods
Nondurable goods Intermediate goods Final goods

12 GDP # 5 Which of the following is included in GDP? A. an intermediate good B. a service produced and used in another country C. a fish that you catch and eat yourself D. a fish that you buy at the market or store

13 Inflation #1 Inflation that is out of control is referred to as
Hyperinflation Deflation Wage price spiral Cost push inflation

14 Inflation #2 If Julia invested $3,000 at an annual interest rate of 5% and from last year to this year there has been a 4% inflation rate, then, after a year the purchasing power of her investment A. rose by 1%. B. fell by 1%. C. is 4%. D. is 5%.

15 Inflation #3 The measurement that shows how the average price of a standard group of goods changes over time is the Market basket Inflation rate Price index Core inflation rate

16 Inflation #4 The theory that inflation occurs when producers raise prices in order to meet increased costs is the Demand pull theory Cost push theory Quantity theory Wage price spiral

17 Inflation #5 Inflation reduces purchasing power because
The same amount of money buys more goods and services The same amount of money buys fewer goods and services The market basket has to be changed every year There is not enough money in the economy

18 Inflation #6 The inflation rate is
The ability to buy goods or services Measured in fixed dollars Not an important measure to economists The percentage change in price over time

19 Putting it Together #1 Business investment, interest rates and credit, consumer expectations, and external shocks are the four main factors that affect The business cycle Gross national product Gross domestic product Inflation

20 Putting it Together #2 What is the BEST measure of a nation’s standard of living? Real GDP per capita Population growth Savings Nominal GDP per capita

21 Putting it Together #3 During the Contraction Phase of the Business Cycle, GDP Is rising Stops rising Is always falling Is not changing

22 Putting it Together #4 The stage of the business cycle where GDP stops falling is Expansion The peak Contraction The trough

23 Putting it Together #5 Typically, when unemployment falls to very low levels Inflation is unchanged Inflation increases A period of deflation follows The purchasing power of a dollar increases

24 Putting it Together #6 Which statement best describes full employment?
Everybody who wants a job has a job There is no unemployment at all There is no cyclical unemployment There is no structural unemployment

25 Unemployment #1 Unemployment that occurs as a result of harvest scheduled or vacations, or when industries slow or shut down during a certain part of the year is called Frictional Seasonal Structural cyclical

26 Unemployment #2 A technician specializing in the repair of video cassette players lost her job several years ago when then DVD player became more affordable for consumers. This is a case of Frictional unemployment Seasonal unemployment Structural unemployment Cyclical unemployment

27 Unemployment #3 Unemployment that occurs when people take time to find jobs is called Frictional Seasonal Structural cyclical

28 Unemployment #4 What will most likely still occur when the economy has achieved full employment? frictional, seasonal, and cyclical unemployment Seasonal, structural, and cyclical unemployment Frictional, seasonal, and structural unemployment None of the above are correct

29 Unemployment #5 If there were a recent downturn in the economy and some economists predicted a recession in the near future, then there is a strong possibility that there will be a Rise in frictional unemployment Fall in structural unemployment Rise in structural unemployment Rise in cyclical unemployment

30 Unemployment #6 Discouraged workers are
Not counted in unemployment rate Counted in the unemployment rate Included in the calculation of the labor force Considered unemployed

31 USA Test Prep #1 Which of these is an economic indicator used to tell how an economy is doing? Equilibrium price Consumer price index Job satisfaction rate Presidential approval rate

32 USA Test Prep #2 Which of these will have an effect on the GDP of the country? Monty buys a Picasso painting Lisa loses $20.00 in a bet with Bart Ned fixes Jay’s car without buying any new parts The Shelbyville Whoopee Cushion company makes 1,000 to export to China

33 USA Test Prep #3 The US Government has decided to issue federal income tax rebates to taxpayers. What is MOST LIKELY the goal of these rebates? Increase consumer spending Increased transfer payments Reduction in the employment rate Reduction in military budget

34 USA Test Prep #4 The Consumer Price Index (CPI) is best used to determine The Dow Jones Index The rate of inflation The unemployment rate Reduction in the military budget

35 USA Test Prep #5 Ned is a typewriter repairman. As typewriters are being replaced by computers Ned finds less and less work. What type of unemployment is Ned experiencing? Seasonal Cyclical Frictional Structural

36 USA Test Prep #6 Over a three year period, the US experienced an increase in the Real GDP, low Inflation, and declining unemployment rate. For this period, the US Was in an economic trough Was in a stagnant economic period Appeared to be entering a recession Was in the middle of an economic boom

Download ppt "Test Review."

Similar presentations

Ads by Google