FP Unit 5 5.01

Front

Which is an economic condition that consumer spending usually measures? Options: competition, depreciation, employment, infrastructure

Back

employment

Front

Which is a factor that measures the condition of the economy? Options: fiscal policy, profit margin, price stability, financial cycle

Back

price stability

Front

When interest rates continue to increase to a high level, the economy might experience a/an

Back

recession

Front

Which are used in the calculation of the gross domestic product? Options: land titles, net exports, projected expenses, intermediate goods

Back

net exports

Front

Sales are falling off, production and employment are in decline, and the general feeling among businesspeople is that times are bad. This information indicates that the business cycle is in which phase?

Back

contraction

Front

When consumer purchasing power decreases, the economy will experience a period of: containment, contraction, emergence, expansion

Back

contraction

Front

Businesses purchasing items for resale are exempt from sales tax. This helps to prevent what problem when measuring the GDP?

Back

double counting

Front

Interest rates that rise and fall by a wide range on a regular basis often are an indication of:

Back

economic instability

Front

A large number of underemployed workers indicates a problem in the economy, because underemployment means that: many people have stopped looking for work, there are insufficient jobs for qualified people, seasonal employees work only part of the year, some employees are taking time off between jobs.

Back

there are insufficient jobs for qualified people

Front

If a bank doubles its interest rates on loans, the demand for money will:

Back

decrease