IFIC (Unit 4 Quiz) UPDATED ACTUAL
Exam Questions and CORRECT Answers
GDP, inflation rate and unemployment rate are 3 common fundamental indicators - CORRECT
ANSWER - GDP, inflation rate and unemployment rate are 3 common ___________
indicators
Gross domestic Product (GDP) is a measure of the total market value of all goods and services
produced (in a year) - CORRECT ANSWER - What economic indicator is a measure of
the total market value of all goods and services produced (in a year)?
GDP values are referred to as either "nominal" or "real" - CORRECT ANSWER -
_____________ values are referred to as either "nominal" or "real"
GDP based on current price: Nominal - CORRECT ANSWER - GDP based on current
market price:
Nominal, or
Real
GDP adjusted for inflation: real - CORRECT ANSWER - GDP adjusted for inflation:
Nominal, or
Real
Increase in real GDP: indicates economic growth,
Decrease in real GDP: indicates economic decline - CORRECT ANSWER -
_____________ in real GDP: indicates economic growth,
_______________ in real GDP: indicates economic decline
Increased GDP means:
Higher profits for companies
, Decreased GDP means:
Lower profits for companies - CORRECT ANSWER - Increased GDP means:
_________ profits for companies
Decreased GDP means:
_______________ profits for companies
Inflation rate: rise in an economies price level over a period of time - CORRECT
ANSWER - What term refers to rise in an economies price level over a period of time?
When purchasing power (amount that one could buy with their dollar) falls, inflation rates rise -
CORRECT ANSWER - When purchasing power ___________, inflation rates
____________
Inflation Rate = (current year CPI value - previous year CPI value) ÷ previous year CPI value x
100 - CORRECT ANSWER - _______________ = (current year CPI value - previous year
CPI value) ÷ previous year CPI value x 100
Unanticipated inflation:
When lenders receive less "real income" and borrowers benefit from cheaper loans - CORRECT
ANSWER - Unanticipated __________:
When lenders receive less "real income" and borrowers benefit from cheaper loans
Unemployment rate: percentage of labor force actively seeking work but unable to find any -
CORRECT ANSWER - Term for the percentage of labor force actively seeking work but
unable to find any
Strong economic growth tends to mean lower unemployment - CORRECT ANSWER -
Strong economic growth tends to mean __________ unemployment rates
Full employment: the highest number of workers that an economy can employ - CORRECT
ANSWER - Term for the highest number of workers that an economy can employ
Exam Questions and CORRECT Answers
GDP, inflation rate and unemployment rate are 3 common fundamental indicators - CORRECT
ANSWER - GDP, inflation rate and unemployment rate are 3 common ___________
indicators
Gross domestic Product (GDP) is a measure of the total market value of all goods and services
produced (in a year) - CORRECT ANSWER - What economic indicator is a measure of
the total market value of all goods and services produced (in a year)?
GDP values are referred to as either "nominal" or "real" - CORRECT ANSWER -
_____________ values are referred to as either "nominal" or "real"
GDP based on current price: Nominal - CORRECT ANSWER - GDP based on current
market price:
Nominal, or
Real
GDP adjusted for inflation: real - CORRECT ANSWER - GDP adjusted for inflation:
Nominal, or
Real
Increase in real GDP: indicates economic growth,
Decrease in real GDP: indicates economic decline - CORRECT ANSWER -
_____________ in real GDP: indicates economic growth,
_______________ in real GDP: indicates economic decline
Increased GDP means:
Higher profits for companies
, Decreased GDP means:
Lower profits for companies - CORRECT ANSWER - Increased GDP means:
_________ profits for companies
Decreased GDP means:
_______________ profits for companies
Inflation rate: rise in an economies price level over a period of time - CORRECT
ANSWER - What term refers to rise in an economies price level over a period of time?
When purchasing power (amount that one could buy with their dollar) falls, inflation rates rise -
CORRECT ANSWER - When purchasing power ___________, inflation rates
____________
Inflation Rate = (current year CPI value - previous year CPI value) ÷ previous year CPI value x
100 - CORRECT ANSWER - _______________ = (current year CPI value - previous year
CPI value) ÷ previous year CPI value x 100
Unanticipated inflation:
When lenders receive less "real income" and borrowers benefit from cheaper loans - CORRECT
ANSWER - Unanticipated __________:
When lenders receive less "real income" and borrowers benefit from cheaper loans
Unemployment rate: percentage of labor force actively seeking work but unable to find any -
CORRECT ANSWER - Term for the percentage of labor force actively seeking work but
unable to find any
Strong economic growth tends to mean lower unemployment - CORRECT ANSWER -
Strong economic growth tends to mean __________ unemployment rates
Full employment: the highest number of workers that an economy can employ - CORRECT
ANSWER - Term for the highest number of workers that an economy can employ
