Investing and Financial Markets — Unit test Answers

Economists use gross national product (GNP) to measure

Which statement best describes why it is difficult to sell a home during a recession?

Which unemployment rate do most economists consider to be acceptable in the United States?

This graph shows changes in GDP and the unemployment rate in the United States in recent years.In what year would someone looking for work have had the hardest time finding a job?

When government intervention makes currency worthless, this condition is called

Income reaches the highest level at the point of the business cycle.

What can be traded in a commodities market?

Which best describes what injector factors bring to an economic system?

Which describes an investor’s primary goal of buying a loan?

Which best describes the role that government and business play in investments?

An increase in gross domestic product (GDP) is a sign that a country’s economy is

Which is an effect of stagflation?

There are five stages in a recession. 1. job loss2. falling production3. falling demand (occurs twice)4. peak production In which order do these stages occur?

Which of the following conditions is most indicative of recovery?

What kind of money is a gold certificate considered to be?

Which is the best definition of inflation?

Economic interactions involving which of the following would most likely be studied in macroeconomics?

Economic growth takes place when a country

Which federal agency calculates the Consumer Price Index (CPI)?

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?