Mrs. Jacobson & Mrs. Adams Economics / Psychology

These are only 15 PRACTICE questions. Your test has 50 questions.
Take the test and click the display corrected version at the end.
Print your results and bring them to class Friday for 5 bonus points
on your test. If you cannot print, copy your results into a new
email and email them to your base group teacher, rcaton@mcsdga.net
or ajacobson@mcsdga.net. We must receive the results BEFORE your
class Friday in order to receive the bonus.

• 1) Which of the following is NOT counted in GDP?
  

  the value of consumption
  the value of intermediary goods
  the value of investment
  the value of government spending
• 2) The IRS lays off thousands of employees after every April 15th.
  This is considered what type of unemployment?
  

  Seasonal
  Structural
  Frictional
  Cyclical
• 3) Which of the following best describes the concept of the business
  cycle?
  

  flow of money from businesses to households as income
  flow of goods from businesses to households
  flow of funds from product markets to factor markets
  alternating periods of economic boom and bust
• 4) Which of the following provides the best measure of a country's
  standard of living?
  

  GDP
  GDP Growth
  GDP per capita
  CPI
• 5) In 2005, the CPI was 150. What occurred since the base year 2000?
  

  Deflation
  Stagflation
  Recession
  Inflation
• 6) A recession causes Ford Motors to lay off 20,000 workers. What type
  of unemployment is this?
  

  cyclical
  frictional
  seasonal
  structural
• 7) Julie had a big fight with her boss can no longer stand to work at
  Burger Hut so she decides to quit her job. What type of
  unemployment is this?
  

  cyclical
  frictional
  seasonal
  structural
• 8) If the general price level rises in excess of 500% per year, then
  what has occurred?
  

  Deflation
  Inflation
  Hyperinflation
  Stagflation
• 9) If the US imports more than it exports, then
  

  there is a current account surplus
  there is a capital account surplus
  there is a negative balance of trade
  there is a positive balance of trade
• 10) Which of the following is NOT an indicator of increased economic
  growth of a nation?
  

  a reduction in unemployment rate
  increased welfare payments by the government
  growth in construction
  increased aggregrate demand
• 11) Which of the following is NOT an indicator used to tell how the
  economy is doing?
  

  CPI
  Unemployment Rate
  GDP
  Equilibrium Price
• 12) Which of the following will have an effect on the GDP of a country?
  

  Fix a flat tire without buying new parts
  Buy an antique candle holder at a yard sale
  Manufacture 20,000 cars and export them
  Lose a bet with a friend
• 13) For the economy to be considered at full employment, the
  unemployment rate should be
  

  0%
  equal to or less than 4.5%
  between 5-10%
  between 11-15%
• 14) Which of the following accounts for inflation?
  

  GPD
  Real GDP
  Nominal GDP
  GDP per capita
• 15) Gross National Product is
  

  value of final goods produced within a country in a year
  value of final goods regardless of where production occurred
  GDP per person
  same as a market basket