Lesson 9 Quiz Questions

Question 1

Macroeconomics

Answer 1

The study of economic factors that are reflective of the entire economy, such as gross domestic product (GDP), inflation rate, interest rate, or unemployment rate

Question 2

Microeconomics

Answer 2

The study of factors that impact small or individual economies, such as supply and demand for a product

Question 3

Gross Domestic Product (GDP)

Answer 3

Measures the total output of a country over a period of time; goods and services produced from the labor and capital located within a country’s borders.

Question 4

Gross National Product (GNP)

Answer 4

Measures the economic output of a country’s citizens - whether that output is produced domestically or in a foreign country

Question 5

Inflation

Answer 5

Represents an increase in the price of goods and services in an economy over a period of time without a respective increase in productivity

Question 6

Deflation

Answer 6

Occurs when the inflation rate is negative

Question 7

Disinflation

Answer 7

Occurs when the inflation rate drops from one year to the next

Question 8

Discouraged Workers

Answer 8

Individuals who are ready and willing to work, but have given up looking for or applying to jobs

Question 9

Marginally Attached Workers

Answer 9

Include discouraged workers and also individuals who are available to work, want to work, and have looked for a job within the past 12 months (but not the four weeks prior to survey)

Question 10

Underemployed Workers

Answer 10

Individuals who are technically overqualified for their current positions and are working in part-time positions

Question 11

Expansion Phase Indicators

Answer 11

• GDP Increasing
• Inflation Increasing
• Interest Rates Increasing
• Employment Increasing

Question 12

Peak Phase Indicators

Answer 12

• GDP High
• Inflation High
• Interest Rates High
• Employment High

Question 13

Contraction Phase Indicators

Answer 13

• GDP Decreasing
• Inflation Decreasing
• Interest Rates Decreasing
• Employment Decreasing

Question 14

Trough Phase Indicators

Answer 14

• GDP Low
• Inflation Low
• Interest Rates Low
• Employment Low

Question 15

Lagging Economic Indicators

Answer 15

• Average duration of unemployment
• Ratio of manufacturing and trade inventories to sales
• Ratio of consumer credit outstanding to personal income

Question 16

Coincident Economic Indicators

Answer 16

• Number of employees on non-agricultural payrolls

- Index of industrial production

Question 17

Leading Economic Indicators

Answer 17

• Average workweek of production workers
• Building Permits
• Stock Prices

Question 18

Monetary Policy

Answer 18

Represents the intended influence on the money supply and interest rates by the Federal Reserve

Question 19

Three primary goals of the Fed

Answer 19

• Maintain price levels
• Maintain full employment
• Facilitate long-term economic growth

Question 20

Four tools of the Fed

Answer 20

1. Reserve Requirement
2. Interest on Reserves
3. Discount Rate
4. Open Market Operations

Question 21

Fiscal Policy

Answer 21

Congress sets by changing tax and government spending policies

Question 22

Chapter 7 Bankruptcy

Answer 22

For wage earners to discharge debts by liquidation

Question 23

Chapter 11 Bankruptcy

Answer 23

For companies to reorganize and adjust debts

Question 24

Chapter 13 Bankruptcy

Answer 24

For wage earners to repay a portion of debts with income over the next 36 to 60 months

Question 25

Frictional Unemployment

Answer 25

Occurs when people are voluntarily unemployed because they are seeking other job opportunities and have yet to find their desired employment