Term
Reginald is studying the steady increases in the manufacturing of goods and services in his local economic system. Which economic term describes his field of study?
a. Economical theory
b. Economic increase
c. Economics
d. Economic growth |
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Which method of economic measurement is used to calculate the total dollar value of all final goods and services produced in a country within a given year?
a. National debt
b. Gross Domestic Product
c. Cost of living
d. Total cost of production |
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Term
Gross Domestic Product is the total dollar value of all final goods and services produced over ___________________.
a. Ten years
b. One month
c. One year
d. Six months |
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Definition
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Term
Consumer, business, and government spending are all components of ______________.
a. Gross Domestic Product
b. Resources
c. Debts
d. Investments |
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Definition
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Term
Which is NOT a component used to measure GDP?
a. Consumer Spending
b. International Spending
c. Business Spending
d. Government Spending |
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Definition
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Term
Which of the following are examples of intermediate goods?
a. Pants and Shirts
b. Cars and Trucks
c. DVDs and CDs
d. Steel and Fabrics |
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Definition
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Term
Purchasing a new vehicle contributes to which GDP component?
a. Exports
b. Business Spending
c. Consumer Spending
d. Government Spending |
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Definition
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Term
8. Toyota opens a new factory in South Carolina. Opening a new factory contributes to which GDP component?
a. Exports
b. Business Spending
c. Consumer Spending
d. Government Spending |
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Definition
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Term
Cadillac manufactured an armored vehicle for the Egyptian president. Manufacturing a good for another country contributes to which GDP component?
a. Exports
b. Business Spending
c. Consumer Spending
d. Government Spending |
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Definition
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Term
What result is yielded from dividing the total yearly GDP is by the current population?
a. GDP per owner
b. GDP per capital
c. GDP per person
d. GDP per capita |
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Definition
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Term
An increase in the GDP per capita indicates that the economy is __________________.
a. Fluctuating
b. Stable
c. Growing
d. Declining |
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Definition
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Term
Decreased demand for goods and services is the main cause of which economic factor?
a. Retail Sales
b. Unemployment
c. Productivity
d. Personal Income |
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Definition
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Term
All of the following improvements will increase productivity EXCEPT:
a. Improved salaries
b. Increase in capital resources
c. Improved training
d. Improved management |
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Definition
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Term
Miller Technologies, Inc. employs 30 workers. In 2009, the company manufactured 125,000 laptops. In 2010, the same 30 workers manufactured 165,000 laptops. The increase in supply is an example of which economic factor?
a. Demand
b. Salaries
c. Productivity
d. Production Cost |
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Definition
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Term
What is measured by the U.S. Department of Commerce every month to study economic growth?
a. Factory output
b. Demand
c. Production
d. Retail Sales |
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Definition
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Term
During poor economic times, many businesses are forced to reduce operating costs by lying off employees. This reduction in the workforce is measured by which economic factor?
a. Retail Sales
b. Productivity
c. Unemployment rate
d. Personal Income |
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Definition
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Term
The North Carolina Department of Transportation is expanding Interstate 85. The project will take three years to complete and cost the state $13.7 million. Using state funds to improve our transportation system contributes to which GDP component?
a. Exports
b. Consumer Spending
c. Business Spending
d. Government Spending |
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Definition
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Term
Consumer spending is calculated by which of the following economic factors?
a. Taxes and Retail Income
b. Personal Income and Retail Sales
c. Personal Income and Taxes
d. Retail Sales and Taxes |
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Definition
| Personal Income and Retail Sales |
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Term
What determines an individual’s personal income?
a. Government Payments
b. Investments
c. Salaries
d. All of the above |
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Definition
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Term
Labor activities contribute to the economy in which of the following ways?
a. Distribution of Wages
b. Creation of Goods and Services
c. Both A and B
d. Neither A or B |
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Definition
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Term
Economists have determined that the economic condition is ________________.
a. Periodic
b. Wavy
c. Cyclical
d. Shifting |
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Definition
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Term
The movement of economic cycles is called what?
a. Business cycle
b. Economic cycle
c. Business periods
d. Economic periods |
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Definition
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Term
Which economic term describes the economy at peak efficiency?
a. Recovery
b. Prosperity
c. Recession
d. Depression |
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Definition
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Term
Which stage of the business cycle is characterized by the decline of economic prosperity?
a. Recovery
b. Prosperity
c. Recession
d. Depression |
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Definition
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Term
Which stage of the business cycle is characterized by an extended period of economic recession?
a. Recovery
b. Prosperity
c. Recession
d. Depression |
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Definition
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Term
The US Gross Domestic Product has gradually decline over the last three quarters of the calendar year. Which stage of the business cycle describes this decline in the economy?
a. Recovery
b. Prosperity
c. Recession
d. Depression |
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Definition
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Term
Which stage of the business cycle is characterized by a consistent increase in Gross Domestic Product and a consistent decrease in unemployment?
a. Recovery
b. Recession
c. Depression
d. Prosperity |
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Definition
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Term
Johnny’s grandfather tells him stories about paying 50¢ for a hamburger, fries, and soda when he was a child. The same meal that Johnny’s grandfather paid 50¢ for in 1937 now costs an average of $5.00. Which economic term explains the price increase between 1937 and 2011?
a. Interest
b. Deflation
c. Price index
d. Inflation |
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Definition
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Term
What occurs when the demand for goods and services becomes greater than the supply?
a. Interest
b. Deflation
c. Price index
d. Inflation |
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Definition
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Term
Which range of inflation can actually stimulate the economy?
a. Mild: 1% - 3%
b. High: 10% - 12%
c. Extreme: 20% +
d. None |
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Definition
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Term
Which of the following is most commonly used to measure inflation?
a. Business Price Index
b. Consumer Income Index
c. Business Income Index
d. Consumer Price Index |
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Definition
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Term
Comparing prices between the previous year and the current year is characterized by which economic term?
a. Interest
b. Deflation
c. Price index
d. Inflation |
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Definition
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Term
During a period of recession, product prices often decreases as the public demand for goods and services decline. Which economic term explains the reduction in product prices?
a. Interest
b. Deflation
c. Price index
d. Inflation |
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Definition
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Term
Which economic term describes the representation of the cost of money for different groups and different settings?
a. Interest
b. Deflation
c. Price index
d. Inflation |
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Definition
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Term
The US Department of Justice accepted a long-term loan from the English government in the amount of $4 million. The DOJ as agreed to repay this loan in 36 months. Which of the following interest rates will the DOJ be charged for this loan?
a. Prime rate
b. Treasury bond rate
c. Discount rate
d. T-Bill rate |
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Definition
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Term
Which of the following interest rates is frequently offered to borrowers with exemplary credit, such as large corporations?
a. Flat rate
b. Prime rate
c. Discount rate
d. T-Bill rate |
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Definition
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Term
Which of the following interest rates is provided to savers willing to guarantee the account holder a six-month deposit?
a. Treasury bond rate
b. Certificate of deposit rate
c. Mortgage rate
d. Corporate bond |
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Definition
| Certificate of deposit rate |
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Term
Malika bought his first house in January. Which of the following interest rates will Malika pay for the bank lending him the money to pay for his new house?
a. Certificate of deposit rate
b. Treasury bond rate
c. Mortgage rate
d. Corporate bond |
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Definition
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Term
Blockbuster Video, Inc borrowed money from a major bank to avoid filing for bankruptcy. Which of the following interest rates will Blockbuster Video be charged for the loan?
a. Corporate bond
b. Treasure bond rate
c. Mortgage rate
d. Certificate of deposit rate |
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Definition
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Term
40. Which of the following interest rates will be charged when borrowing money from the Federal Reserve?
a. T-Bill rate
b. Flat rate
c. Discount rate
d. Prime rate |
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Definition
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Term
The US Treasury Department accepted a short-term loan from China in the amount of $1.5 million. The Treasury as agreed to repay this loan in 12 weeks. Which of the following interest rates will the US Treasury Department be charged for this loan?
a. Prime rate
b. Flat rate
c. Discount rate
d. T-Bill rate |
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Definition
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Term
BMW recently purchased 50 acres of land in Kansas, where they plan to build a new manufacturing facility. Which economic term describes this purchase?
a. Corporate bonding
b. Consumer spending
c. Capital spending
d. Government spending |
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Definition
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Term
Which economic term involves spending by businesses for items such as land, buildings, equipment, and new products?
a. Capital projects
b. Corporate bonds
c. Capital spending
d. Corporate investments |
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Definition
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Term
Capital projects are funded by all of the following EXCEPT:
a. Bonds
b. Savings
c. Loans
d. Stocks |
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Definition
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Term
Which economic term describes individual ownership of a public company?
a. Stocks
b. Savings
c. Loans
d. Bonds |
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Definition
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Term
Stock Investments are financial sources for which of the following investment activities?
a. Corporate investments
b. Capital projects
c. Capital spending
d. Corporate bonds |
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Definition
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Term
Which investment activity allows an individual to invest in the government or a corporation by lending the organization money?
a. Stocks
b. Savings
c. Loans
d. Bonds |
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Definition
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Term
Which economic term describes the money that organizations give bondholders for their investments?
a. Labor
b. Interest
c. Salary
d. Wages |
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Definition
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Term
Which of the following statements BEST describes a budget surplus?
a. The government spends more money than it collects.
b. The government spends only the money that it collects.
c. The government spends less money than it collects.
d. The government collects less than it spends. |
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Definition
| The government spends less money than it collects |
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Term
President Obama decides to sign into law a bill that will give the US military an additional $27 million for equipment and training. However, by signing the bill the President gives the military more money than is available in the current national defense budget. Which economic term describes the effect that this bill will have on the national budget?
a. Budget surplus
b. Budget stability
c. Budget deficit
d. Budget reduction |
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Definition
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Term
The US currently owes $14.1 trillion. Which economic term describes this debt?
a. International debt
b. Federal debt
c. National debt
d. Government debt |
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Definition
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Term
Jasmine made several purchases using her credit card because she did not have any money in her checking account. By using her credit card to pay for things that she could not afford, Jasmine is increasing __________________________?
a. Business debt
b. Government debt
c. Corporate debt
d. Consumer debt |
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Definition
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Term
The state department collects monthly reports of total sales from all newspaper companies in North Carolina. This information would be useful for which measurement of economic activities?
a. Borrowing
b. Consumer spending
c. Investment activities
d. Labor activities |
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Definition
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Term
A report about the economy reveals a decreasing unemployment rate, consumer buying of goods and services is increasing significantly, and the GDP is rising. Which business cycle does this report cover?
a. Depression
b. Prosperity
c. Recession
d. Recovery |
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