Econ U4: Economic Indicators

What does GDP stand for?

• Gross Domestic Product

• General Domestic Product

• Gross Development Product

• General Development Product

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DOK Level 1: Recall

Calculate the GDP for the following Economy: Last year, they sold 100 boxes of paperclips at $1 each, 500 pairs of scissors for $5 each, and 250 boxes of glue sticks for $10 each.

• $5,100

• $510

• $1,000,000

• $2,500

Answer explanation

To calculate the GDP, multiply the quantity sold by the price for each item and sum them up: (100*1) + (500*5) + (250*10) = $5,100. Therefore, the correct answer is $5,100.

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DOK Level 1: Recall

What type of unemployment occurs when workers are between jobs?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Seasonal Unemployment

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DOK Level 1: Recall

Which tool is commonly used to measure inflation?

• Consumer Price Index (CPI)

• Gross Domestic Product (GDP)

• Unemployment Rate

• Business Cycle

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DOK Level 1: Recall

How does CPI measure inflation?

• The President sets a number and the markets adjust.

• They monitor the stock market to look for significant price increases.

• It is assessed through a survey of random shoppers in select locations across the country.

• It takes the average price of a "basket" of consumer goods and services compared to the previous measurement.

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DOK Level 1: Recall

What phase of the business cycle is characterized by increasing economic activity and employment past the point of the precious Peak?

• Expansion

• Recovery

• Contraction

• Trough

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DOK Level 1: Recall

What is the definition of GDP?

• The total value of all goods and services produced within a country in a given period

• The total value of all goods and services produced by a country's residents

• The total value of all goods and services consumed within a country

• The total value of all goods and services exported by a country

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DOK Level 1: Recall

What is considered an acceptable unemployment rate in a developed economy?

• 0-1%

• 2-3%

• 3-5%

• 6-8%

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DOK Level 1: Recall

What is an acceptable rate of inflation for a stable economy?

• 0-1%

• 2-3%

• 4-5%

• 6-7%

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DOK Level 1: Recall

Which of the following is included in the civilian labor force?

• Employed individuals

• Unemployed individuals actively seeking work

• Both A and B

• Retired individuals

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DOK Level 1: Recall