1. Who wants to be a Millionaire? PBM Test 2 Review

2. Which of the following is true during Prosperity? B - Consumer sales are weak A - GDP falls rapidly C - Most people who want to work are working D - Businesses lower production C - Most people who want to work are working

3. If GDP per capita is increasing, what does it mean? B – The economy is in recession A – The economy is growing C – The economy is shrinking D – The economy is stagnant A – The economy is growing

4. Which of the following is true about inflation? B - During inflation, the buying power of the dollar decreases. A - It is a problem that most nations have to cope with. C - It is an increase in the general level of prices. D - All of these are true about inflation.

5. Which of the following would NOT be counted in GDP? B – Business spending for equipment A – Intermediate goods used in manufacturing C - Consumer spending for housing D – None of these would be counted in GDP A – Intermediate goods used in manufacturing

6. Which of the following would be counted in GDP? B – Consumer spending for housing A – Business spending for equipment C - Government spending to pay employees D - All of these would be counted in GDP

7. Deflation usually occurs during which economic period(s)? B – Depression A – Recession C – Prosperity D – Both Recession and Depression

8. Which of the following are examples of jobs that have been created in our region because of world trade? B – Improvements to roads A – New railways C – New port facilities D – All of these examples are correct

9. What is the correct order of the phases of the Business Cycle? B – Prosperity, Depression, Recession, Recovery A – Prosperity, Recovery, Recession, Depression C – Recession, Prosperity, Depression, Recovery D – Prosperity, Recession, Depression, Recovery

10. Limits that a government sets on the quantity of a product that can be imported or exported are called B - Quotients A - Embargoes C - Quotas D – Tariffs C - Quotas

11. The willingness and ability of a supplier to produce a product is B – A Substitute A – Supply C – A Complement D – Demand A – Supply

12. Which of the following is true about deflation? B – During deflation, the buying power of the dollar decreases. A – It is an decrease in the general level of prices. C – It is a problem that most nations have to cope with. D – All of these are true about deflation. A – It is an decrease in the general level of prices.

13. How is GDP per capita calculated? B – Divide working population by GDP A – Divide GDP by total population C – Divide total population by GDP D – Divide GDP by working population A – Divide GDP by total population

14. Which of the following can affect supply? B – Changes in desire for a product A – Cost of production C – Changes in income D – All of these can affect supply A – Cost of production

15. What is the point at which the supply and demand curves cross? B – Equilibrium A – Balance C – Equilateral D – Fair Trade B – Equilibrium

16. Which of the following is true during a depression? B – Unemployment is high for a prolonged period of time A – Consumer sales are weak C – GDP falls rapidly D – All of these are true during a depression

17. Which of these are reasons a country would set quotas? B - To control supply and keep prices at a certain level A - To express displeasure at another countrys policies C - To protect its own industries D - All of these are reasons a country would set quotas

18. What is the value of money of one country expressed in terms of the money of the other country? B - Exchange Rate A - Dollar Calculator C - Money Ratio D - Balance of Payments B - Exchange Rate

19. If a substitute product is offered at a lower price, what will happen to demand for the initial product? B – Demand for the initial product will not be affected A – Demand for the initial product will go down C – Demand for the initial product will go up D - Demand for the initial product will not go down A – Demand for the initial product will go down

20. Which of the following is true during a recovery? B – Businesses fail A – Consumer sales are weak C – GDP begins to rise again D – All of these are true during a recovery

21. What is the total dollar value of all final goods and services produced in a country during one year? B - GDP (Gross Domestic Product) per capita A – GDP (Gross Domestic Product) C - TDP (Total Domestic Product) per capita D - TDP (Total Domestic Product) A – GDP (Gross Domestic Product)

22. Which of the following are benefits of world trade? B - Improvement in product quality A – Political alliances with other countries C - Greater variety of goods and services D - These are all benefits of world trade

23. Which of these are issues with world trade? B – Trade barriers A – Impacts of exchange rates on trade C – Increased economic interdependence among countries D – All of these are issues with world trade

24. Which of the following can affect demand? B – Changes in the prices of related products A – Changes in desire for a product C – Changes in income D – All of these can affect demand

25. If prices increased 10 percent during the last year, how much would items that cost $300 last year cost now? B - $297 A - $330 C - $303 D - $270 A - $330

26. Which of these totally stops the export or import of a product? B – Embargoes A – Quotients C – Tariffs D – Quotas B - Embargoes

27. The willingness and ability of a person to buy a product is B – supply A – demand C – a complement D – a substitute A - demand

28. Taxes that a government places on certain imported products are called B – Tariffs A – Embargoes C – Quotients D – Quotas B – Tariffs

29. Which of the following are problems of world trade? B – Decreased tax revenue from loss of manufacturing A – Political alliances with other countries C – Greater variety of goods and services D – These are all problems of world trade B – Decreased tax revenue from loss of manufacturing