National Economy Quiz

Which of the following are counted toward GDP?

• Stocks

• A five-year old care sold online

• Unsold products created by a business

• The government paying teachers

• Getting your nails done

What is the difference between fiscal and monetary policy?

• Monetary policy is controlled by the Federal Reserve while fiscal policy is controlled by the federal goverment

• They are affectively the same thing

• Monetary policy is controlled by the federal government while fiscal policy is controlled by the Federal Reserve

• Fiscal policy was invented by Teddy Roosevelt while monetary policy was invented by Franklin Roosevelt

Definition: Refers to a sustained period of increased prices

• CPI

• GDP

• Business Cycle

• Inflation

Marsha went to college and just graduated with a degree in biology. Now she's working at a local fast food restaurant. How do economists describe her situation?

• Unemployed

• Underemployed

• Seasonal Employment

• Disappointing

GDP is used to measure a country's....

• inflation

• skilled labor

• economic performance

• labor force

The highest and lowest points of a business cycle are referred to as...

• expansion and contraction

• underperforming and overperforming

• undertow and currents

• peaks and troughs

One of the most important things the Fed can do is...

• set tax brackets

• control inflation

• advise the government

• make economic rules

Fiscal policy includes:

• no change of policy at all

• increasing exports and imports

• changing taxation and government spending

• decreasing the size of the government and economic policies

The natural rate of unemployment is ideally somewhere between 3-10%

• True

• False

Use the following information to calculate the unemployment rate.

Currently employed: 75

No job, but looking for work: 5

Total population: 500

• 10%

• 1%

• 6.25%

• 3.33%