Economics Ultimate Exam: Quiz! MCQ

20 Questions | Total Attempts: 68

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Economics Quizzes & Trivia

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Questions and Answers
  • 1. 
    How is growth in the economy measured?
    • A. 

      Consumer price index (CPI)

    • B. 

      Growth Domestic Pressure (GDP)

    • C. 

      Gross Domestic Product (GDP)

  • 2. 
    What does GDP measure?
    • A. 

      The total value of all real estate, imports and consumer goods in a particular country

    • B. 

      The market value of all goods and services produced within a country in a given period.

    • C. 

      Changes in the price level of consumer goods and services purchased by households.

  • 3. 
    Approximately what is the historic average annual rate of GDP over the last 50 years?
    • A. 

      1%

    • B. 

      3%

    • C. 

      5%

  • 4. 
    What is the generally accepted definition of a recession?
    • A. 

      2 consecutive quarters of negative GDP

    • B. 

      3 consecutive quarters of negative GDP

    • C. 

      4 consecutive quarters of negative GDP

  • 5. 
    What are the 2 primary indicators used to measure the level of employment in the United States?
    • A. 

      Unemployment rate and the future hiring estimates

    • B. 

      Unemployment rate and the number of workers hired by the federal government

    • C. 

      Unemployment rate and the jobless claims report

  • 6. 
    Approximately what is the historic average of the Unemployment rate over the last 50 years?
    • A. 

      2%

    • B. 

      4%

    • C. 

      6%

  • 7. 
    Approximately what is the current Unemployment rate as of February 2011?
    • A. 

      6.9%

    • B. 

      8.9%

    • C. 

      10.9%

  • 8. 
    What was the approximate number for the jobless claims report in the week ending February 26, 2010?
    • A. 

      368,000

    • B. 

      1.3 Million

    • C. 

      3.77 Million

  • 9. 
    What common ratio is used to tell a stock valuation?
    • A. 

      Price to Earnings Ratio

    • B. 

      Profits to Earnings Ratio

    • C. 

      Price to Benchmark Ratio

  • 10. 
    What is the average P/E for the S&P 500 Index over the last 10 years?
    • A. 

      15 times

    • B. 

      20 times

    • C. 

      25 times

  • 11. 
    What is the current P/E for the S&P 500?
    • A. 

      8 times

    • B. 

      10 times

    • C. 

      13 times

  • 12. 
    Inflation is measured by the annual percentage change in what?
    • A. 

      The Consumer Price Index (CPI)

    • B. 

      The Consumption Percentage Index (CPI)

    • C. 

      The Consistent Profit Index (CPI)

  • 13. 
    What causes inflation?
    • A. 

      Growth of the job market

    • B. 

      Growth of the money supply

    • C. 

      Growth of interest rates

  • 14. 
    Approximately what is the average annual change in the CPI over the last 50 years?
    • A. 

      3%

    • B. 

      5%

    • C. 

      7%

  • 15. 
    Approximately what is the current annual change in the CPI as of January 2011?
    • A. 

      0.6%

    • B. 

      1.1%

    • C. 

      1.6%

  • 16. 
    Which of the following is NOT one of the duties of The Federal Reserve?
    • A. 

      Conduct the nation's monetary policy

    • B. 

      Issuing United States Treasury securities

    • C. 

      Provide financial services to depository institutions

  • 17. 
    What is the most common gauge used to track interest rates on a macro level?
    • A. 

      The United States Treasury Interest Rate Index (USTIR)

    • B. 

      The Federal Reserve Borrowers Interest Rate

    • C. 

      The Federal Funds Rate

  • 18. 
    What is the current Federal Funds Rate range as of  January 26, 2011?
    • A. 

      0-.25%

    • B. 

      .50-.75%

    • C. 

      1.00-1.25%

  • 19. 
    Approximately what is the current 10 Year Treasury yield as of March 7, 2011?
    • A. 

      1.5%

    • B. 

      2.5%

    • C. 

      3.5%

  • 20. 
    The 30-year marketable security the U.S. government sells in order to pay off maturing debt and to raise the cash needed to run the federal government is referred to as the _____________________.
    • A. 

      30 Year Treasury Note

    • B. 

      30 Year Treasury Bond

    • C. 

      30 Year Treasury Bill