Econ: GDP, unemployment, minimum wage, indicators

Front

What does GDP stand for?

Back

Gross Domestic Product

Front

What should the “normal” or “acceptable” inflation rate be? Options: 7-9%, 1-2%, 3-5%, 2-4%

Back

3-5%

Front

What does GDP measure?

Back

The strength of the economy

Front

All of the following could cause unemployment EXCEPT: A change in seasons, A decrease in taxes, A mismatch between job requirements and worker skill, People being temporarily between jobs

Back

A decrease in taxes

Front

What should the “normal” or “acceptable” unemployment rate be? Options: 1-10%, 2-3%, 3-5%, 10-12%

Back

3-5%

Front

What might someone say if they think minimum wage is a good thing?

Back

Minimum wage allows low-income workers to make enough money to survive.

Front

What might someone say if they think minimum wage is a bad thing?

Back

Minimum wage can lead to employers firing employees to cut costs.

Front

Which of the following best defines “unemployment”? When a person is not earning a wage. , When a person is actively looking for a job, but is unable to find one. , When a person is actively working, but not earning a wage or salary. , When a person is earning a wage while working at a regular job.

Back

When a person is actively looking for a job, but is unable to find one.

Front

Which of the following best defines “inflation”?

Back

An increase in prices and a decrease in the value of money.

Front

What do we use the Consumer Price Index for?

Back

CPI is used to measure inflation.