Economics Ultimate Exam: Quiz! MCQ
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- 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
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