Transcript Document

Unit 2 Review
Here's how to play JEOPARDY!
The class will be split into two teams, the RED team and the GREEN team.
When a question is displayed, the RED team will use the ABCD keys on their clickers to answer. The
GREEN team will use the EFGH keys to answer.
The team with the HIGHEST PERCENTAGE of correct responses will earn the points for that question,
AND the right to pick the next category!
Let's do a practice question to make sure everybody understands how to play.
Go on to the Practice Question
Sample Question
Insert Question Here
1
Who is the greatest college football team?
A
A
Michigan Wolverines
E
C
B Michigan State Spartans
F
D
C Ohio State Buckeyes
G
D
H
B
E
Notre Dame Fighting Irish
F
Michigan Wolverines
G
H
Music
Go on to the Game Board
Chapter 17
Unemployment
Chapter 15
Chapter 13
Models
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Score Board
Red Team
Green Team
Back to Game Board
100 pts
Insert Question Here
1
Based on the graph, the increase in oil prices caused output to
A
B
A
Rise from Q2 to Q0
E
C
B Fall from Q0 to Q2
F
D
C Rise from Q0 to Q1
G
D
H
E
Fall from Q1 to Q0
F
Milton Friedman
G
H
Music
Score
Back
200 pts
Insert Question Here
2
Economists use the term "leakage" to refer to
A
B
C
A Money that is wasted
E
B income that has no effect on aggregate
F
D
C
demand.
income that does not follow the circular flow. G
E
D money that is retained by businesses.
F
G
income that does not follow the
circular flow.
H
Music
Score
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H
300 pts
Insert Question Here
3
High unemployment is usually a sign that
A
B
A
the economy is getting better.
E
C
B government spending is on the increase
F
D
C purchasing has slowed
G
D
H
E
government has increased the money
supply
F
purchasing has slowed
G
H
Music
Score
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400 pts
Insert Question Here
4
400
Which economist believed that the government should step in to stimulate aggregate
demand in order to avoid or shorten economic recessions?
A
B
A Adam Smith
E
C
B Alan Greenspan
F
D
C Milton Friedman
G
E
D John Maynard Keynes
H
F
G
John Maynard Keynes
H
Music
Score
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500 pts
Insert Question Here
5
According to some economists, stagflation is
caused by
A
B
A
demand-pull inflation
E
C
B cost-push inflation
F
D
C recessionary pricing
G
D
H
E
too rapid expansion of the economy
F
cost-push inflation
G
H
Music
Score
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100 pts
Insert Question Here
1
Temporary unemployment between jobs because of firings, layoffs,
voluntary searches for new jobs, or retraining is called
A
B
A Cyclical unemployment
E
C
B Structural unemployment
F
D
C Seasonal unemployment
G
E
D Frictional unemployment
H
F
frictional unemployment
Frictional unemployment
G
H
Music
Score
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Cyclical unemployment
200 pts
Insert Question Here
2
Ronald McDonald, who just graduated form Clown School, is looking
to find his first real job
A
B
A Cyclical unemployment
E
C
B Structural unemployment
F
D
C Seasonal unemployment
G
E
D Frictional unemployment
H
F
Frictional unemployment
G
H
Music
Score
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300 pts
Insert Question Here
3
Frosty the Snowman is expecting to be out of work shortly
following the last big snow of the year
A
B
A Cyclical unemployment
E
C
B Structural unemployment
F
D
C Seasonal unemployment
G
E
D Frictional unemployment
H
F
Seasonal unemployment
G
H
Music
Score
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400 pts
Insert Question Here
4
Workers at many nuclear power plants lost their jobs
when power companies decided not to replace aging
plants.
A
B
A
Cyclical unemployment
E
C
B Structural unemployment
F
D
C Seasonal unemployment
G
D
H
E
Frictional unemployment
F
Structural unemployment
G
H
Music
Score
Back
500 pts
Insert Question Here
5
Sam I Am was laid off after orders for Green Eggs & Ham
declined greatly following last years stock market crash
A
B
C
D
E
A Cyclical unemployment
E
B Structural unemployment
F
C Seasonal unemployment
G
D Frictional unemployment
H
F
Cyclical unemployment
G
H
Music
Score
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100 pts
Insert Question Here
1
When credit is inexpensive and easy to get, the Federal
Reserve is probably using ___________.
A
B
A
loose money policy
E
C
B prime rate
F
D
C tight money policy
G
D
H
E
discount rate
F
loose money policy
G
H
Music
Score
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200 pts
Insert Question Here
2
The Federal Reserve can affect the money supply by
A
B
C
A
working through the regional Federal
Reserve Banks
B changing reserve requirements
E
C issuing monthly money supply targets
G
D
H
F
D
E
announcing a new prime rate
F
changing reserve requirements
G
H
Music
Score
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300 pts
Insert Question Here
3
The number of district Federal Reserve banks in the United
States is
A
B
A
1
E
C
B 12
F
D
C 25
G
D
H
E
2,500
F
12
G
H
Music
Score
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400 pts
Insert Question Here
4
Which type of institution must belong to the Federal Reserve?
A
B
A national banks
E
C
B thrift institutions
F
D
C savings and loans banks
G
E
D all financial institutions that take deposits
H
F
all financial institutions that take deposits
G
H
Music
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500 pts
Insert Question Here
5
The Federal Reserve is responsible for
A
B
A
monetary policy in the United States
E
C
B fiscal policy in the United States
F
D
C international monetary policy
G
D
H
E
F
international financial policies
monetary policy in the United States
G
H
Music
Score
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100 pts
Insert Question Here
1
What happens when inflation occurs?
A
B
C
D
A The business cycle quickly reaches a peak
E
B
or boom
The purchasing power of the dollar declines
F
C The value of a good declines with wear and
G
D
H
E
F
tear
The purchasing power of the dollar
The purchasing power of the dollar declines
increases
G
H
Music
Score
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200 pts
Insert Question Here
2
The Consumer Price Index (CPI) is often used to
measure ___________________.
A
A
production
E
C
B distribution
F
D
C competition
G
D
H
B
E
inflation
F
inflation
G
H
Music
Score
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300 pts
Insert Question Here
3
The ups and downs in an
economy are called
A
B
A expansions
E
C
B fluctuations
F
D
C troughs
G
E
D depression
H
F
fluctuations
G
H
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400 pts
Insert Question Here
4
Business cycles in the United States
A
B
A
occur about every 6 years
E
C
B occur irregularly
F
D
C always follow the same pattern
G
D
H
E
are always preceded by periods of mild
inflation
F
occur irregularly
G
H
Music
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500 pts
Insert Question Here
5
When coincident indicators rise or fall, they indicate
A
B
A that recovery is in progress
E
C
B the end of a business cycle
F
D
C
the rise or fall in economic activity
G
E
D the start of a recession or depression
H
F
the rise or fall in economic activity
G
H
Music
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100 pts
Insert Question Here
1
Which letter on the graph represents a boom in the business
cycle?
A
B
A
W
E
C
B X
F
D
C Y
G
D
H
E
Z
F
W
G
H
Music
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200 pts
Insert Question Here
2
Members of which group on the Federal Reserve organization chart buy
stock in a Federal Reserve Bank? Who are the shareholders?
A
B
C
D
E
A Member Banks
E
B Board of Governors
F
C Federal Advisory Council
G
D Federal Open Market Committee
H
F
Member Banks
G
H
Music
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brdrnonebrdrnonebrdrnonebrdrnoneOrganization of the Federal Reserve System
300 pts
Insert Question Here
3
Which of the following results should be included where the
question mark appears in the illustration?
A
B
A
unemployment
E
C
B inflation
F
D
C production
G
D
H
E
consumer spending
F
unemployment
G
H
Music
Score
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400 pts
Insert Question Here
4
In this equation, the “I” represents the
A
B
A total of every ones income in a nation
C
B
total of all business purchases of items used to produce
other goods “capital goods”.
F
C
total investments in the United States by people from other
countries.
G
D
total investments in other nations by United States citizens.
H
D
E
F
total of all business purchases of items used to produce other goods “capital
goods”.
G
H
Music
Score
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GDP = C + I + G + X
E
500 pts
Insert Question Here
5
Why will the Fed’s action in the passage cause the
result described?
A
B
A
Banks will raise their loan interest rates, so people will
borrow less.
E
C
B Sellers of expensive items will raise their prices.
F
D
C Inflation will increase, so the economy will go into a
G
recession.
E
D
Banks will have to meet a higher reserve
requirement.
H
F
Banks will raise their loan interest rates, so people will borrow less.
G
H
Music
Score
Back
Like a driver applying a quick tap of the brakes, the Federal Reserve yesterday raised the cost of
borrowing to keep the U.S. economy from running ahead too fast. As a result, consumers can expect to
pay a little more when buying homes, cars, and other big-ticket items, as well as when carrying creditcard balances.
Source: The Columbus Dispatch, July 1, 1999.