#1
What is the primary purpose of the Human Development Index (HDI)?
To assess quality of life
ExplanationMeasures well-being through education, life expectancy, and income.
#2
Which of the following indicators represents the total value of all final goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationKey measure of a nation's economic output.
#3
What does the term 'Fiscal Policy' refer to in economics?
Government's management of taxation and spending
ExplanationGovernment's use of revenue and expenditure to influence the economy.
#4
Which term describes a situation where the price of goods and services rises, leading to a decrease in the purchasing power of money?
Inflation
ExplanationErodes the real value of currency, reducing purchasing power.
#5
Which economic indicator measures the total value of all goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationKey measure of a nation's economic output.
#6
What does the term 'Balance of Trade' refer to in economics?
Difference between a country's exports and imports
ExplanationAssesses the economic relationship between a country and its trading partners.
#7
Which of the following is considered a leading indicator of economic activity?
Stock market indices
ExplanationReflects investors' expectations and confidence in the economy.
#8
Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?
Consumer Price Index (CPI)
ExplanationTracks inflation's impact on consumer purchasing power.
#9
Which of the following factors is NOT typically included in the calculation of a country's Gross Domestic Product (GDP)?
Foreign investment
ExplanationGDP focuses on domestic production, excluding foreign investments.
#10
What does the term 'PPP' stand for in economics?
Purchasing Power Parity
ExplanationCompares currency values for consistent international price comparison.
#11
Which of the following measures the total value of all goods and services produced by labor and property located within a country's borders?
Gross National Product (GNP)
ExplanationIncludes production by residents, regardless of location.
#12
Which economic indicator measures the total value of all goods and services produced by labor and property owned by a country's residents?
Gross National Product (GNP)
ExplanationAccounts for production by a country's residents.
#13
What does the Gini coefficient measure?
Income inequality
ExplanationQuantifies distribution inequality within a population.
#14
What is the significance of the unemployment rate as an economic indicator?
It measures the level of employment within the labor force
ExplanationIndicates the proportion of the workforce without jobs.
#15
What is the significance of the inflation rate as an economic indicator?
It indicates the rate of increase in prices
ExplanationProvides insight into the pace of rising prices in the economy.