Measuring Economic Activity

What is measured by economic indicators?

• production of the country

• comparison to other countries

• economic growth

• all of the above

The amount of goods and services produced by a country measures how well an economy is performing.

• True

• False

GDP is calculated by the amount of goods and services produced in a country every

• 6 months

• 6 years

• 1 year

Standard of living is

• the level of material comfort as measured by the goods and services that are available.

• amount of goods and services people can buy with the money they have

• All of the above.

What does unemployment rate measure?

• Number of products and services produced by a country.

• economic strength of a country

• number of people who can not find a job.

Which of the following results in decreased buying power?

• Standard of living

• Deflation

• Inflation

Increased cost of raw materials, salaries and war do not have an effect on inflation.

• True

• False

When an economy produces more goods than people want, sellers have to lower prices and cut production.

• True

• False

Government uses taxes to pay for

• housing

• farming

• defense

When the government spends more on programs than it collects in taxes, the difference in the amount is called

• national debt

• budget deficit

• budget surplus