Download Business Economics Quiz 6B (EC:017, EC:082) NAME_____

Business Economics
Quiz 6B (EC:017, EC:082)
NAME____________________
1. __A___ The category of GDP called gross private domestic investment includes
A.
B.
C.
D.
all purchases of capital goods.
all exports of goods and services.
purchases made by private individuals.
inventories held over from previous years.
2. __D___ Which of the following is true when a potato farmer keeps some of the farm's potatoes for
personal use:
A. The potatoes must be reported in the gross domestic product.
B. The farmer is engaging in an illegal activity.
C. The farmer is not producing salable goods.
D. The potatoes are not counted in the gross domestic product.
3. __C___ A six-month decline in GDP is known as a
A.
B.
C.
D.
depression.
productivity increase.
recession.
trade deficit.
4. __B___ As the gross domestic product increases, it is easier for all levels of government to
A. maintain trade deficits.
B. carry out their functions.
C. reduce their spending.
D. conserve natural resources.
5. __B___ The gross domestic product (GDP) is calculated each year in the United States to determine
A. the level of exports.
B. the health of the economy.
C. whether income taxes should be lowered or raised.
D. how much money should be printed during the year.
6.__C___ What often happens when a nation has a high unemployment rate?
A. The gross domestic product increases.
B. The consumer price index decreases.
C. The nation experiences an economic slowdown.
D. The stock market remains unaffected.
7.__C___ Which of the following statements is true regarding a nation's unemployment rates:
A. Globalization does not usually have a major effect on a nation's unemployment rates.
B. A nation's business cycles do not usually impact the country's unemployment rates.
C. A nation always has a certain percentage of unemployed citizens at any given time.
D. During times of great expansion, a nation's workers are generally underemployed.
8.__D___ What is one reason why the overall unemployment rate understates the actual employment
situation?
A. The rate reflects regional differences.
B. The rate is not seasonally adjusted.
C. Underemployed people are listed.
D. Discouraged workers are not included.
Business Economics
Quiz 6B (EC:017, EC:082)
NAME____________________
9.__D___ A large number of underemployed workers indicates that there is a problem in the economy
because underemployment means that
A. seasonal employees work only part of the year.
B. many people have stopped looking for work.
C. some workers are taking time off between jobs.
D. there are not enough jobs for qualified people.
10.__B__ Vernon was the milkman in his neighborhood for 30 years. Then, supermarkets started selling
milk right in the store, and Vernon's job became obsolete. Vernon is a victim of ___________
unemployment.
A. seasonal
B. structural
C. frictional
D. cyclical