Georgia Milestones: Measuring Economic Activity Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. When inflation occurs, what happens to income?

Question 2 2. What is one effect of inflation?

Question 3 3. What happens when a computer gets produced this year and distributed to a retail store's inventory?

Question 4 4. What does inflation mean?

Question 5 5. What are the factors of production?

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Question 6 6. If the nominal GDP is $5 trillion in year 1, and the real GDP is $4.5 trillion, what is the GDP deflator?

Question 7 7. Which of the following statements is FALSE regarding inflation?

Question 8 8. Which of the following is NOT included in the calculation of GDP?

Question 9 9. Which of the following methods is where economists measure GDP by measuring how much the country spent the previous year?

Question 10 10. What does the Consumer Price Index measure?

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Question 11 11. What are the two methods economists use to measure Gross Domestic Product (GDP)?

Question 12 12. Which of the following would be included in the GDP?

Question 13 13. Which of the following statements is true regarding the relationships in a market economy?

Question 14 14. Why would the revenue of a singer from the United States that held a concert abroad not included in the U.S. GDP?

Question 15 15. What is inflation?

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Question 16 16. Which one is a type of inflation?

Question 17 17. What are the two general theories offered to explain stagnation?

Question 18 18. Which factor of GDP is almost always the largest contributor to GDP?

Question 19 19. When savings leaks out of the circular flow model, what happens to it?

Question 20 20. Which of the following is true when using the income approach to measure GDP?

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Question 21 21. When economists estimate Gross Domestic Product using the income approach, which types of income are included?

Question 22 22. Which of the following statements is NOT true regarding the expenditure approach?

Question 23 23.

What is the GDP for the following information:

Consumption = 10,000

Investment = 2,000

Government spending = 1,000

Exports = 7,500

Imports = 7,000

Question 24 24. Which one of the following is the best explanation of stagflation?

Question 25 25. Which of the following is an effect of stagflation?

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Question 26 26. Which of the following usually counts AGAINST a country's GDP?

Question 27 27. If you needed to increase the GDP, why might you focus on consumption to do this?

Question 28 28. When demand exceeds supply, what type of inflation has occurred?

Question 29 29. What are the main categories of investment?

Question 30 30. If the Consumer Price Index rises from 101 to 104, which of the following statements is true?

Georgia Milestones: Measuring Economic Activity Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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