Unit 5 Economics Quiz

What does the Consumer Price Index (CPI) evaluate?

• Change in wholesale prices

• Economic growth among nations

• Monthly price changes in consumer goods and services

• Federal Reserve policy decisions

Which of the following is an example of frictional unemployment?

• A factory closes due to a recession

• A worker leaves their job to find a better opportunity

• A farmworker loses their job after harvest season

• A company automates its production line

What type of competition involves many competitors selling virtually identical products?

• Oligopoly

• Monopolistic competition

• Monopoly

• Pure competition

What defines a mixed economy?

• Complete public ownership of resources

• Full privatization of industries

• Combination of planned and market systems

• Equal government and private sector control

Which tool does the Federal Reserve use to control money supply?

• Privatization

• Discount rate

• Price indexes

• Unemployment rates

What happens during hyperinflation?

• Prices decrease significantly

• Inflation exceeds 50% monthly

• Economic growth stagnates

• The GDP falls for two consecutive quarters

In a socialist economy, who owns key enterprises?

• Private individuals

• Non-profit organizations

• The government

• Global corporations

What does GDP measure?

• Changes in price levels

• Total value of all goods and services produced in a nation

• The unemployment rate

• Monetary policy effectiveness

What is disinflation?

• Period of falling average prices

• Period of rising average prices

• Period of slowing average price increases

• Period of no price changes

Which phase of the business cycle is characterized by strong economic growth?

• Recovery

• Expansion

• Contraction

• Recession