Economic and Development Concepts Quiz

Primary sector involves extracting raw materials, such as agriculture.

Inflation erodes purchasing power by increasing prices over time.

GDP measures the economic activity within a country's borders.

GNP measures the total economic output by a country's citizens, including overseas.

Opportunity cost measures the value of the foregone alternative when a decision is made.

GDP measures a country's economic output within its borders over a period.

Developed economies typically have high life expectancies due to better healthcare.

In a command economy, means of production are owned or controlled by the state.

GDP measures the economic performance of a country within its borders.

Inflation can spur growth or hinder it, but it's not a direct factor.

It's the principle where countries specialize in producing goods with lower opportunity costs.

Macroeconomic policy aims to stabilize economy, promote growth, and control inflation.

Monopoly arises when a single entity controls the entire market.

Firms in monopolistic competition have some control over prices due to product differentiation.

It illustrates how firms react to changes in price levels by adjusting production.

It illustrates the distribution of income or wealth among a nation's residents.

HDI includes indicators like life expectancy, education, and per capita income.

Perfect competition implies easy entry and exit for firms.

It shows the inverse relationship between unemployment and inflation.

Surplus occurs when supply exceeds demand, pushing prices down.

Oligopolies have a few dominant firms that can influence prices.

NDP adjusts GDP for depreciation, giving a net value of production.

Aggregate demand includes consumption, investment, government spending, not imports.

Monetary policy involves central bank's actions to regulate money supply and interest rates, not fiscal policy.

Progressive tax system imposes higher tax rates on higher income brackets.