Measuring Economic Activites, Ch 2 Review

Question 1

If people are buying fewer cars, so tire manufacturers layoff employees, this probably marks a

Accepted Answer

Recession

Question 2

Last depression was about 50 years ago

Accepted Answer

False

Question 3

Which purchases are NOT considered retail sales?

Accepted Answer

Purchase of oil from OPEC

Question 4

GDP does NOT include

Accepted Answer

Steel

Question 5

Places where consumer incomes and buying power are increasing because of economic expansion

Accepted Answer

emerging markets

Question 6

Yield on a long term U.S. Government debt obligations of up to 30 years

Accepted Answer

Treasury bond rate

Question 7

Represents debt for an organization

Accepted Answer

bond

Question 8

Yield on a short term U.S. Government debt obligation (less than 1 year)

Accepted Answer

T-bill rate

Question 9

Person who purchases/owns a corporate or government bond

Accepted Answer

creditor

Question 10

The rate for time deposits at savings institutions

Accepted Answer

CD rate

Question 11

Prolonged unemployment, weak consumer sales, and business failures marks a

Accepted Answer

Trough/Depression

Question 12

Who are not part of the labor force?

Accepted Answer

Retirees

Question 13

GDP per capita is

Accepted Answer

GDP/Total Population

Question 14

Inflation most harms which group..

Accepted Answer

Retired

Question 15

What does equity represent?

Accepted Answer

Stock

Question 16

The rate banks charge to their best business customers

Accepted Answer

Prime rate

Question 17

If GDP begins to increase, the economy could be in a period of

Accepted Answer

Recovery

Question 18

If wages increase faster than gains in productivity, the cost of producing goods...

Accepted Answer

increases and prices rise

Question 19

The quantity of goods and services that businesses are willing and able to provide

Accepted Answer

Supply

Question 20

What is the order of a business cycle?

Accepted Answer

Peak (Prosperity)/Recession/Trough (Depression)/Recovery

Question 21

What is a major source of investment funds

Accepted Answer

Personal Savings

Question 22

When governments spend more money than they take in

Accepted Answer

budget deficit

Question 23

An extended period marked by high unemployment, very weak consumer sales, GDP falls rapidly

Accepted Answer

Depression

Question 24

The rate financial institutions are charged to borrow funds from the Federal Reserve Banks

Accepted Answer

Discount rate

Question 25

Which is not an example of capital spending?

Accepted Answer

Paper

Question 26

The amount individuals pay to borrow money for the purchase of a new home

Accepted Answer

Mortgage rate

Question 27

What encourages spending...

Accepted Answer

Interest rate

Question 28

This is used to measure inflation

Accepted Answer

CPI

Question 29

When consumers increase their borrowing, interest rates tend to decline

Accepted Answer

False

Question 30

Retail sales include

Accepted Answer

Parents buying toys

Question 31

Prices go up usually faster than wages catch up

Accepted Answer

Inflation

Question 32

Period when MOST people are working, demand for goods & services, wages, & GDP is highest

Accepted Answer

Prosperity/Peak

Question 33

What is it when it takes more money to buy the same amount of goods and services?

Accepted Answer

Inflation

Measuring Economic Activites, Ch 2 Review

Questions 33

Measuring Economic Activites, Ch 2 Review

Questions 33