Document 1152974

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NAME ____________________________________
CLASS - - - - - - - - - - - -
DATE - - - - - - - - - - - - -
Section 1: Guided Reading and Review
Gross Domestic Product
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A. As You Read
As you read Section 1, answer the following questions about gross domestic pr::Jdt:ct.
1. What is the gross domestic product? - - - - - - - - - - - - - - - - - - - - - - - -
2. How is the expenditure approach used to calculate it? - - - - - - - - - - - - - - ·
3. How is the income approach used to calculate it? - - - - - - - - - - - - - - - - 4. What is the difference between nominal GDP and real GDP? -------------------Describe four limitations of using GDP to measure economic growth:
5.
6.
7.
8.
9. How is the gross national product derived from the gross domestic product?
10. How is GDP related to aggregate supply and aggregate demand? ---'-----------
B. Reviewing Key Terms
Match the descriptions in Column I with the terms in Column II. Write the letter of the -correct
answer in the blank provided. You will not use all the terms.
Column I
__
__
__
__
11. a c;ystem that collects ill'3Croeconomic Statistics on rroduction,
income, investment, and savings
12. goods used in the production of final goods
13. GDP measured in current prices
14. goods that last a short period of time
15. GDP expressed in constant, or unchanging, prices
16. goods that last for a relatively long time
17. loss of the value of capital equipment that results from normal
wear and tear
.
18. the total amount of goods and services in the economy available at
all possible price levels
19. the average of all prices in the economy
20. the annual income earned by U.S.-owned firms and U.S. residents
21. the dollar value of all final goods and services produced within a
country's borders in a given year
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Chapter 12 Section 1: Guided Reading and Review
Column II
a.
b.
c.
d.
e.
f.
g.
h.
::-eal GDP
nominal GDP
aggregate supply
nondurable goods
price level
intermediate goods
depreciation
national income
accounting
i. gross domestic product
j. durable goods
~~. gross national product
'. aggregate demand
NAME-----------------------------------
c~ss
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DATE --------------
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Section 1: Quiz
Gross Domestic Product
A. Key Terms
Match the descriptions in Column I with the terms in Column II. Write the letter of the correct
answer in the blank provided.
Column I
Column II
1. a system that collects macroeconomic statistics on production, income,
investment, and savings
2. the dollar value of all final goods and services produced within a
country's borders in a given year
3. consumer goods that last for a long time
4. loss of the value of capital equipment that results from normal wear
and tear
a. gross domestic
product (GDP)
b. depreciation
c. price level
d. durable goods
e. national income
accounting
5. the average of all prices in the economy
B. Main Ideas
Write the letter of the correct answer in the blank provided.
6. What are intermediate goods?
a. goods that are not sold or exchanged in an economy
b. goods used in the production of other goods
c. goods that were sold in earlier years
d. goods that are produced outside the country
7. How does an economist calculate GDP for one year using the expenditure
approach?
a. add together all the amounts spent on final goods and services
b. add up all the incomes received
c. add the amounts spent on goods and services to the incomes received
d. subtract the amounts received as income from the goods and services
8. What is the underground economy?
a. the amount spent for environmental cleanup and similar products
b. the goods and services people make or do themselves
c. the products and income that are not reported as income to the government
d. costs of such things as personal safety, vacations, and sick pay
9. Which of the following is a nondurable good?
a. washing machine
c. bicycle
b. air conditioner
d. gasoline
__ 10. What is the difference between real GDP and nominal GDP?
a. Real GDP is accurate to hundreds of dollars; nominal GDP is accurate to thousands of dollars.
b. Real GDP includes nonmarket activities; nominal GDP has no nonmarket
activities.
c. Real GDP is based on constant prices; nominal GOP is based on the current year's
prices.
d. Real GOP allows for depreciation; nominal GOP allows for no depreciation.
Chapter 12 Section 1: Quiz
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NAME _________________________________
c~ss
_____________
DATE _ _ _ _ __
Section 2: Guided Reading and Review
Business Cycles
A. As You Read
As you read Section 2, fill in each item in the following diagram.
Phases
1.--------2. - - - - - - - - 3. - - - - - - - - 4. _ _ _ _ _ _ __
Contributing Factors
5. ________________
6. ________________
7. ________________
Cycle Indicators
9. - - - - - - - - 10. - - - - - - - - 11. - - - - - - - - -
8. ________________
B. Reviewing Key Terms
Define the following terms.
12. business cycle ---------------------------------------------------
13. expans,on
14. economic growth
15. peak
16. contraction
17. trough _________________________________________________________
18. recession ------------------------------------------------------19. depression ----------------------------------------------------20. stagflation--------------------------------------------21. leading indicators ----------------------------------------------
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Chapter 12 Section 2: Guided Reading and Review
NAME ____________________________________
CLASS - - - - - - - - - - - - -
DATE - - - - - - - - - - - - - -
Section 2: Quiz
Business Cycles
A. Key Terms
Match the descriptions in Calumn I with the terms in Column II. Write the letter of the correct
answer in the blank provided.
Column I
Column II
__ 1. a period of macroeconomic expansion followed by
a period of contraction
a. peak
2. a steady, long-term increase in real GDP
3. the lowest point in an economic contraction
4. the height of an .economic expansion
b. economic growth
c. recessiOn
d. trough
e. business cycle
5. a prolonged economic contraction
B. Main Ideas
Write the letter of the correct answer in the blank provided.
6. What happens to consumer and business spending when the interest rates go up?
a. both types of spending increase
b. both types of spending decrease
c. consumer spending increases and business spending decreases
d. business spending increases and consumer spending decreases
7. What are the leading economic indicators supposed to predict?
a. business cycles
b. stagflaticn
c. consumer expectations
d. nonmarket activities
8. Which of the following finally brought the U.S. economy out of the Great
Depression?
a. World War I
b. World War II
c. the Korean War
d. the Viemam War
9. Which of !he following was a lasting effect of the OPEC embargo in the 1970s on
the U.S. econorr.y?
a. higher gasc!ine ?rices
b. lower interest rates
c. reduced t:se cf t-·erroleum
d. reduced taxes
__ 10. What was the major change in the U.S. economy in the 1990s?
a. more bank failures
b. more capital equipment manufacturing
c. higher impact of international trade
d. heavier reliance on services
Chapter 12 Section 2: Quiz
51
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c~ss
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Section 1: Quiz
Unemployment
A. Key Terms
Match the descriptions of types of unemployment in Column I with the terms in Column II.
Write the letter of the correct answer in the blank provided..
Column I
·
1. when a period of steady work is followed by a period of unemployment
each year
2. when unemployment rises during economic downturns and falls when the
economy improves
3. when people change jobs or get laid off
4. when the skills of workers do not match the jobs that are available
Column II
a. seasonal
unemployment
b. cyclical
unemployment
c. frictional
unemployment
d. structural
unemployment
B. Main Ideas
Write the letter of the correct answer in the blank provided.
5. How can changes in technology or consumer demand make it difficult for people to
get jobs?
a. by making it difficult for people to buy what they want
b. by changing the number or kind of jobs available
c. by creating a demand for things that are not available
d. by making it possible for some people to work fewer hours
6. What does the unemployment rate represent?
a. the total number of people who are not employed
b. the total number of people who are unable to find work
c. the percentage of the total population that is not employed
d. the percentage of the total work force that is unemployed
7. What does "full employment" mean?
a. There is no cyclical unemployment.
b. Every person who wants to work has a job.
c. Approximately 80 percent of people have jobs.
d. Those who want to work have full-time jobs.
8. What can happen to the economy when the level of unemployment is very low?
a. It can make it difficult for some to find jobs.
b. It can create a booming economy.
c. It can cause wages and prices to rise.
d. It does not have a predictable effect.
9. Why don't government planners try to end seasonal unemployment?
a. It would eliminate too many jobs.
b. Many people do not want to work all year.
c. It would be too expensive.
d. It is a natural part of a healthy economy.
__ 10. What is the term for a situation in which a person is overqualified for the job he
or she has?
a. partial employment
c. low-skilled work
b. underemployment
d. discouraged worker
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Chapter 13 Section 1: Quiz
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NAME _____________________________
CLASS -------------
DATE - - - - - - - - - - - -
Section 2: Guided Reading and Review
L
Inflation
A. As You Read
As you read Section 2, answer the following questions.
1. What would you use to see how prices have changed over time? -----------------
2. What does the example of the Barrow's house increasing from $12,000 to $150,000 over
50yearsshow? _____________________________________________________
3. How is the Consumer Price Index (CPI) used? - - - - - - - - - - - - - - - - - - - - - 4. How does the Bureau of Labor Statistics determine the CPI? - - - - - - - - - - - - - - - -
5. Explain the difference between creeping inflation and chronic inflation. - - - - - - - - - -
tl
6. What happens when hyperinflation occurs over an extended period of time? ---------
Describe three theories of the causes of inflation.
7. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8. --------------------------------------------------------9. ---------------------------------------------------------How does inflation affect each of the following?
10. purchasing power---------------------------------------11.
___________________________________________
f~edincome
12. savings _______________________________________________
B. Reviewing Key Terms
Define the following terms.
13. inflation rate----------------------------------------------14. deflation----------------------------------------------15. Consumer Price Index ------------'-------------------------------16. inflation ________________________________
:(1
17. wage-price spiral __________________________________________
1
18. price index----------------------------------------------------
Chapter 13 Section 2: Guided Reading and Review
15)
NAME-----------------------------------
c~ss
_____________ DATE -------------
Section 1: Quiz
What Are Taxes?
I
l
A. Key Terms
Match the descriptions in Column I with the terms in Column ll. Write the letter of the correct
answer in the blank provided.
Column I
Column II
1. income
a. tax base
2. a tax in which the percentage paid increases as income increases
b. revenue
3. a tax in which the percentage paid decreases as income increases
c. progressive tax
4. income, property, good, or service that is subject to tax
d. regressive tax
B. Main Ideas
Write the letter of the correct answer in the blank provided.
5. What gives the U.S. government the right to collect taxes?
a. custom of government
c. the U.S. Constitution
b. state laws in all 52 states
d. an act of the U.S. Congress
6. What does the "equity" of a tax mean?
a. The tax is simple to collect.
b. The tax is fairly assessed.
c. The tax is paid equally by everyone.
d. The tax is paid only by those who will use the service it provides.
7. What happens to the percentage of an income that is taxed when income rises and
the tax is a proportional one?
a. The percentage of tax falls.
b. The percentage of tax rises.
c. The percentage of tax first rises and then falls.
d. The percentage of tax stays the same.
8. How would you describe a tax that is assessed according to the benefits-received
principle?
a. Those who receive direct payments of the money the tax generates are the people
who pay the tax.
b. Those who receive the benefits the tax provides are the people who pay the tax.
c. One group of people receives benefits from the tax but another group pays the tax.
d. All groups receive benefits from the tax but not all groups pay equally.
9. On which of the following goods or services might a tax increase be hardest to pass
on to consumers?
c. automatic car washes
a. gasoline
d. prescription medications
b. groceries
__ 10. What determines the incidence of a tax?
a. the elasticity of demand of the product taxed
b. the laws of the government that imposes the tax
c. the wealth of the people who are taxed
d. the willingness to pay of the people who are taxed
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Chapter 14 Section 1: Quiz
3)
NAME _______________________________
c~ss
_____________
DATE -------------
Section 2: Guided Reading and Review
-'\
Federal Taxes
A. As You Read
As you read Section 2, fill in supporting facts or details under each main idea by answering each
question.
Main Idea: Individual income taxes are imposed on the income of all individuals living in the
country.
1. Why do employers withhold a set amount of your income?
2. What is taxable income? - - - - - - - - - - - - - - - - - - - - - - - -
Main Idea: Federal Insurance Contributions Act (FICA) taxes fund two large government
programs.
3. What does Social Security provide? - - - - - - - - - - - - - - - - - - - -
4. What is M e d i c a r e ? - - - - - - - - - - - - - - - - - - - - - - - - - -
Main Idea: Taxes are sometimes used to affect behavior.
5. What items are taxed for the purpose of changing behavior?
B. Reviewing Key Terms
Match the descriptions in Column I with the terms in Column II. Write the letter of the correct
answer in the blank provided.
Column I
Column II
6. amounts that you can subtract from your income when filing taxes
a. taxable income
7. form used to file one's mcome taxes
b. tariff
8. income on which tax must be paid
c. tax return
9. tax on a monetary gift from a living person valued above a certain amount
d. withholding
__ 10.
tax
on the total value of the money and property of a person who has died
__ 11. tax payments taken out of an employee's pay before he or she receives a
paycheck
__ 12. tax levied on foreign goods brought into the United States
f4Chapter 14 Section 2: Guided Reading and Review
e. deductions
f. gift tax
g. estate tax