Unit 4 Test Answers

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A
nominal measurement
B
consumer price index
C
annual rate
D
US Bureau of Labor statistic
43

Using complete sentences, explain the differences between developed and developing countries in the following areas: GDP per capita, the dominant sector(s) in the economy, and the standard of living for most of the people in the country.

Answer:

Developed countries generally have a higher GDP per capita than developing countries. Their economies tend to be dominated by the tertiary (service) sector and advanced manufacturing, while developing countries often rely more on primary-sector activities such as agriculture and resource extraction. Most people in developed countries tend to have a higher standard of living, with better access to services and goods, while people in developing countries are more likely to have lower incomes and less access to healthcare, education, and other resources.

44

Does a depression always follow a recession?

A
Yes, the trough is always considered a depression.
B
No, a depression is indicated when the recession is exceptionally long.
C
Yes, for recovery to occur, the trough must be reached.
D
No, the economy could decline quickly and bypass recession.
45

What is the difference between inflation and deflation?

A
Inflation can result from falling demand and boosts the value of money. Deflation can result from rising demand and reduces the value of money.
B
Inflation can result from rising demand and boosts the value of money. Deflation can result from falling demand and reduces the value of money.
C
Inflation can result from falling demand and reduces the value of money. Deflation can result from rising demand and boosts the value of money.
D
Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.
46

Occupational Safety and Health AdministrationEnvironmental Protection AgencyFood and Drug AdministrationSecurities and Exchange Commission

A
Occupational Safety and Health Administration
B
Environmental Protection Agency
C
Food and Drug Administration
D
Securities and Exchange Commission
47

How do consumers’ feelings about the economy help contribute to growth?

A
Positive consumer attitudes influence spending habits.
B
Positive consumer attitudes increase job prospects.
C
Positive consumer attitudes inspire increased production.
D
Positive consumer attitudes can end a depression.
48

Spending that can change from year to year is known as

A
discretionary spending.
B
deficit spending.
C
mandatory spending.
D
expansionary spending.
49

As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David? Select two options.

A
cyclically unemployed
B
domestically unemployed
C
frictionally unemployed
D
structurally unemployed
E
still employed
F
unemployed

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