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LOMA 308 Questions and Correct
Answers/ Latest Update / Already
Graded
Transfer payments
Ans: A payment made by a govt for which no goods or services are given
in return
Intermediation
Ans: The transfer of funds from savers to borrowers through the services of
a financial intermediary
Product (output) markets
Ans: A market in which businesses supply finished goods and service to
households, other businesses and governments
Labor markets
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Ans: A market in which households offer their labor to businesses and
governments in exchange for wages or other compensation
Financial (capital) market
Ans: A market in which money is transferred from savers to borrowers
Medium of exchange
Ans: A standardized method of making and receiving payments for goods
and services
Unit of account
Ans: The monetary unit in which value is expressed
Real GDP
Ans: Gross domestic product that has been adjusted for changes in price
levels
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Per capita GDP
Ans: Gross domestic product divided by country's population
Final goods
Ans: A good that is consumed rather than a good used to produce
another product
Genuine progress index index
Ans: A measure of a country's progress and wellbeing determined by
incorporating environmental and social factors that aren't measured by
the country's gross domestic product (GDP)
Natural rate of unemployment
Ans: The level of unemployment caused by people leaving the workforce
because their skills are no longer needed or they are looking for other jobs
and not by a recession or other drop in economic activity. In the US, it is
believed to be ~5%
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Expansion
Ans: The phase in the business cycle in which unemployment is low and
real GDP rises for two or more consecutive quarters
Contraction
Ans: The phase in the business cycle in which unemployment begins to rise
and real GDP decreases from an earlier quarter
Recession
Ans: A significant decline in economic activity spread across the
economy and lasting more than a few months. Unemployment is
generally high and real GDP usually falls for two or more quarters
Depression
Ans: A severe and prolonged downturn in economic activity
characterized by substantial increases in unemployment and significant
decreases in real GDP and available credit
LOMA 308 Questions and Correct
Answers/ Latest Update / Already
Graded
Transfer payments
Ans: A payment made by a govt for which no goods or services are given
in return
Intermediation
Ans: The transfer of funds from savers to borrowers through the services of
a financial intermediary
Product (output) markets
Ans: A market in which businesses supply finished goods and service to
households, other businesses and governments
Labor markets
,2 | Page
Ans: A market in which households offer their labor to businesses and
governments in exchange for wages or other compensation
Financial (capital) market
Ans: A market in which money is transferred from savers to borrowers
Medium of exchange
Ans: A standardized method of making and receiving payments for goods
and services
Unit of account
Ans: The monetary unit in which value is expressed
Real GDP
Ans: Gross domestic product that has been adjusted for changes in price
levels
,3 | Page
Per capita GDP
Ans: Gross domestic product divided by country's population
Final goods
Ans: A good that is consumed rather than a good used to produce
another product
Genuine progress index index
Ans: A measure of a country's progress and wellbeing determined by
incorporating environmental and social factors that aren't measured by
the country's gross domestic product (GDP)
Natural rate of unemployment
Ans: The level of unemployment caused by people leaving the workforce
because their skills are no longer needed or they are looking for other jobs
and not by a recession or other drop in economic activity. In the US, it is
believed to be ~5%
, 4 | Page
Expansion
Ans: The phase in the business cycle in which unemployment is low and
real GDP rises for two or more consecutive quarters
Contraction
Ans: The phase in the business cycle in which unemployment begins to rise
and real GDP decreases from an earlier quarter
Recession
Ans: A significant decline in economic activity spread across the
economy and lasting more than a few months. Unemployment is
generally high and real GDP usually falls for two or more quarters
Depression
Ans: A severe and prolonged downturn in economic activity
characterized by substantial increases in unemployment and significant
decreases in real GDP and available credit
