BUSN 11 Chapter 2 Practice Test Questions with Correct Answers
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Course
BUSN 11
Institution
BUSN 11
BUSN 11 Chapter 2 Practice Test Questions with Correct Answers
Identify a true statement about real gross domestic product (GDP)? - Answer-It usually tends to be understated as it does not include any illegal activities.
The _____ is the percentage of people in the labor force over age 16 who ...
BUSN 11 Chapter 2 Practice Test
Questions with Correct Answers
Identify a true statement about real gross domestic product (GDP)? - Answer-It usually
tends to be understated as it does not include any illegal activities.
The _____ is the percentage of people in the labor force over age 16 who do not have
jobs and are actively seeking work. - Answer-unemployment rate
The periodic contraction and expansion that occur over time in virtually every economy
is known as the _____. - Answer-business cycle
The prices of all the commodities have gone up in the country of Sraznesia, and this
has led to country-wide protests. The situation worsens as the average prices increase
more than 50% a month, resulting in more aggressive protests from the citizens. In the
given scenario, this price rise will most likely lead to _____. - Answer-hyperinflation
The _____ is a measure of inflation that evaluates the change over time in the
weighted-average wholesale values. - Answer-producer price index
In the context of evaluating economic performance, which of the following statements is
true of productivity? - Answer-A low level of productivity tends to correlate with a
stagnant economy.
In the context of fiscal policy, most economists agree that: - Answer-lower taxes can
leave more money in people's pockets for them to spend or invest.
Which of the following statements is true of the fiscal cliff? - Answer-It was a package of
draconian across-the-board spending cuts.
Which of the following statements best describes a budget deficit? - Answer-It is the
shortfall that occurs when expenses are higher than revenue over a given period of
time.
In the context of monetary policy, which of the following statements is true of
commercial banks? - Answer-They accept demand deposits and make loans for the
public
In the context of monetary policy, which of the following statements is true of open
market operations? - Answer-They involve securities that the government issues to
finance its deficit spending.
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