IFIC (Unit 4 Quiz) UPDATED ACTUAL Exam
Questions and CORRECT Answers
Terms in this set (56)
GDP, inflation rate and GDP, inflation rate and unemployment rate are 3 common fundamental
unemployment rate are 3 indicators
common_______indicators
What economic indicator is a Gross domestic Product (GDP) is a measure of the total market
measure of the total market value of all goods and services produced (in a year)
value of all goods and
services produced (in a year)?
______values are referred to as GDP values are referred to as either "nominal" or "real"
either
"nominal" or "real"
GDP based on current market GDP based on current price: Nominal
price: Nominal, or
Real
GDP adjusted for GDP adjusted for inflation: real
inflation: Nominal,
or
Real
______in real GDP: indicates Increase in real GDP: indicates economic
economic growth, Decrease in real GDP: indicates
growth,
economic decline
_______in real GDP: indicates
economic
decline
Increased GDP means: Increased GDP means:
_____profits for companies Higher profits for
Decreased GDP means: companies Decreased
_______profits for companies GDP means: Lower
profits for companies
What term refers to rise in an Inflation rate: rise in an economies price level over a period of time
economies price level over a
period of time?
, When purchasing power__, inflation When purchasing power (amount that one could buy with their
rates ____________ dollar) falls, inflation rates rise
_______= (current year CPI value - Inflation Rate = (current year CPI value - previous year CPI value)
previous year CPI value) ÷ ÷ previous year CPI value x 100
previous year CPI value x 100
Unanticipated __________: Unanticipated inflation:
When lenders receive less "real When lenders receive less "real income" and borrowers benefit from
income" cheaper loans
and borrowers benefit from
cheaper loans
Term for the percentage of labor Unemployment rate: percentage of labor force actively seeking
force actively seeking work but work but unable to find any
unable to find any
Strong economic growth tends to Strong economic growth tends to mean lower unemployment
mean
_____unemployment rates
Term for the highest number of Full employment: the highest number of workers that an economy can employ
workers that an economy can
employ
Full employment in Canada is Full employment in Canada is considered to be less than 6%
considered to be less than unemployment.
____________%
unemployment.
Consumer price index (CPI): The cost to purchase goods and
Term for the cost to purchase
services within a country
goods and services within a
- Statistics Canada tracks 600 goods and services for the CPI
country
_____= The current market value of CPI = The current market value of the tracked goods and
the services divided by its value in the base year and multiplied by
tracked goods and services
100
divided by its value in the base
year and multiplied by
100
An_____CPI means investors have An increased CPI means investors have less money available to
less invest (or investors will be more reliant on investment income
money available to invest (or
to cover living expenses)
investors will be more reliant on
investment income to cover
living expenses)
Questions and CORRECT Answers
Terms in this set (56)
GDP, inflation rate and GDP, inflation rate and unemployment rate are 3 common fundamental
unemployment rate are 3 indicators
common_______indicators
What economic indicator is a Gross domestic Product (GDP) is a measure of the total market
measure of the total market value of all goods and services produced (in a year)
value of all goods and
services produced (in a year)?
______values are referred to as GDP values are referred to as either "nominal" or "real"
either
"nominal" or "real"
GDP based on current market GDP based on current price: Nominal
price: Nominal, or
Real
GDP adjusted for GDP adjusted for inflation: real
inflation: Nominal,
or
Real
______in real GDP: indicates Increase in real GDP: indicates economic
economic growth, Decrease in real GDP: indicates
growth,
economic decline
_______in real GDP: indicates
economic
decline
Increased GDP means: Increased GDP means:
_____profits for companies Higher profits for
Decreased GDP means: companies Decreased
_______profits for companies GDP means: Lower
profits for companies
What term refers to rise in an Inflation rate: rise in an economies price level over a period of time
economies price level over a
period of time?
, When purchasing power__, inflation When purchasing power (amount that one could buy with their
rates ____________ dollar) falls, inflation rates rise
_______= (current year CPI value - Inflation Rate = (current year CPI value - previous year CPI value)
previous year CPI value) ÷ ÷ previous year CPI value x 100
previous year CPI value x 100
Unanticipated __________: Unanticipated inflation:
When lenders receive less "real When lenders receive less "real income" and borrowers benefit from
income" cheaper loans
and borrowers benefit from
cheaper loans
Term for the percentage of labor Unemployment rate: percentage of labor force actively seeking
force actively seeking work but work but unable to find any
unable to find any
Strong economic growth tends to Strong economic growth tends to mean lower unemployment
mean
_____unemployment rates
Term for the highest number of Full employment: the highest number of workers that an economy can employ
workers that an economy can
employ
Full employment in Canada is Full employment in Canada is considered to be less than 6%
considered to be less than unemployment.
____________%
unemployment.
Consumer price index (CPI): The cost to purchase goods and
Term for the cost to purchase
services within a country
goods and services within a
- Statistics Canada tracks 600 goods and services for the CPI
country
_____= The current market value of CPI = The current market value of the tracked goods and
the services divided by its value in the base year and multiplied by
tracked goods and services
100
divided by its value in the base
year and multiplied by
100
An_____CPI means investors have An increased CPI means investors have less money available to
less invest (or investors will be more reliant on investment income
money available to invest (or
to cover living expenses)
investors will be more reliant on
investment income to cover
living expenses)
