Name:

Class Period:

Economic Health Pre-Test

This is NOT a graded test. This is just a pre-test to assess your knowledge on these topics!

1. Which of the following transactions would be included in GDP?

a. You purchase $100 worth of souvenirs on a trip to Spain
b. A local Starbucks purchases a new espresso machine
c. The local baker spends $500 on flour
d. You babysit for 2 hours and get $20 in cash

2. The measure of the market value of all final goods and services produced in a country during a year
is called:
a. Total Product
b. Gross Domestic Product
c. Total Domestic Product
d. None of the above

3. Which measurement of GDP takes out the effects of inflation and does not account for population
size?
a. Nominal GDP
b. Nominal GDP per capita
c. Real GDP
d. Real GDP per capita

4. What term defines 6 or more months of negative real GDP growth?

a. trough
b. recovery
c. peak
d. recession

5. Which of the following is measured by real GDP?

a. Value of leisure
b. Value of goods and services produced in the home
c. environmental quality
d. the health of an economy
 6. What term is used to describe normal changes in the health of an economy?
a. Aggregate Supply
b. Business Cycle
c. Aggregate Demand
d. Government regulation

7. In which phase of the business cycle are output levels and employment at their lowest levels?
a. Peak
b. Trough
c. Recession
d. Recovery

8. Which of the following is NOT a source of economic growth?

a. Increased wages
b. Human capital
c. Technology & Productivity
d. Physical capital

9. What is the most powerful contributor to economic growth?

a. Changes in industry
b. Government intervention
c. Increased wages
d. Innovation

10. What term describes the ability of an economy to increase its output per person?
a. Economic Growth
b. Economic Achievement
c. Economic Innovation
d. Economic Stability