Unit 2 Quiz

Which definition belongs to Macroeconomics? 

• financial, or business variable that it is associated with

• Studies the behavior of a country and how its policies affect the economy as a whole.

• GDP

• Studies individuals and business decisions

Which definition belongs to Microeconomics? 

• An increase in price results in an increase in quantity supplied

• Production and Consumer interaction model

• Studies the behavior of a country and how its policies affect the economy as a whole.

• Study of decisions made by people and businesses regarding the allocation of resources and prices of goods and services

GDP stands for what? 

• Gross Domestic product

• Gross Defense product

• Growing Domestic Product

• Gross Defense Population

GDP is defined as 

• An increase in price results in an increase in quantity supplied

• Depletion of available resources

• the total value of goods produced and services provided in a country during one year.

• Economics

What are the four main indicators of economic health? Select all that are correct 

• Unemployment rate

• Inflation

• GDP

• Price Index

• Economics

Which definition is correct for Real GDP? 

• The dollar price of GDP in a base year’s price, used to compare changes in GDP from one year to the next. An increase in real GDP is an increase in economic growth.

• Depletion of available resources

• GDP that is not adjusted for inflation. The value of goods and services in current prices.

• Currency value of all final goods and services produced within a country in a given period of time

Which definition is correct for Nominal GDP? 

• Partnership, Entrepreneurship, Money, Corporation

• Economics

• The dollar price of GDP in a base year’s price, used to compare changes in GDP from one year to the next. An increase in real GDP is an increase in economic growth.

• GDP that is not adjusted for inflation. The value of goods and services in current prices.

Match the definition below to the correct term! 

The government's plan for taxes and spending to influence the economy 

• Monetary Policy

• Fiscal Policy

• Contractionary

• Expansionary

Which of the following is the correct definition for Contractionary Fiscal Policy?

• Either the raising of taxes or reducing government spending

• increasing government spending

• decreasing government involvement

• stabilizing taxes

Match the definition below to the correct term! 

Either an increase in government Spending, or a decrease in tax revenue-or a combination of the two to spur economic activity

• Contractionary Fiscal Policy

• Expansionary Fiscal Policy

• Expansionary Monetary Policy

• Contractionary Fiscal Policy