#1
What does GDP stand for?
Gross Domestic Product
General Demand Projection
Government Development Plan
Global Demand Protocol
#2
What is the opportunity cost in economics?
The explicit cost of production
The cost of forgoing the next best alternative when making a decision
The total cost of production
The cost incurred in hiring additional resources
#3
What is the role of the Federal Reserve in the United States?
Regulating international trade
Conducting monetary policy and regulating the money supply
Enforcing antitrust laws
Administering social security programs
#4
What is the primary function of the World Trade Organization (WTO)?
Regulating international financial markets
Promoting global economic development
Facilitating trade negotiations and dispute resolution
Implementing environmental protection policies
#5
What is the concept of a 'liquidity trap' in macroeconomics?
A situation where interest rates are high, discouraging investment and spending
A condition where monetary policy becomes ineffective due to very low interest rates
The tendency of consumers to hoard money rather than spend it
A scenario where inflation is uncontrollable
#6
Which of the following is NOT included in the Consumer Price Index (CPI)?
Food and Beverage
Housing
Stock Market Prices
Clothing and Footwear
#7
What is the formula for calculating inflation rate?
(CPI in Current Year - CPI in Previous Year) / CPI in Previous Year
(CPI in Previous Year - CPI in Current Year) / CPI in Current Year
(GDP in Current Year - GDP in Previous Year) / GDP in Previous Year
(GDP in Previous Year - GDP in Current Year) / GDP in Current Year
#8
Which economic system relies on supply and demand with little or no government intervention?
Socialism
Communism
Capitalism
Mixed Economy
#9
What is the formula for calculating the unemployment rate?
(Number of Employed / Labor Force) * 100
(Number of Unemployed / Labor Force) * 100
(Number of Employed - Number of Unemployed) / Labor Force
(Labor Force - Number of Employed) / Number of Unemployed
#10
Which economic indicator is often considered a leading indicator of economic health?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Stock Market Performance
Unemployment Rate
#11
Which of the following is a measure of the average prices received by producers of goods and services at all stages of the production process?
Consumer Price Index (CPI)
Producer Price Index (PPI)
Gini Coefficient
Human Development Index (HDI)
#12
What is the significance of the Phillips Curve in economics?
It shows the relationship between inflation and unemployment.
It measures the elasticity of supply and demand.
It calculates the Gross Domestic Product (GDP).
It analyzes the impact of fiscal policy on the economy.
#13
What is the concept of the Laffer Curve in taxation?
It shows the relationship between government spending and economic growth.
It illustrates the relationship between tax rates and government revenue.
It measures the impact of inflation on tax collections.
It analyzes the distribution of income in a society.
#14
In the context of international trade, what does the term 'tariff' refer to?
A tax on imports or exports
A subsidy provided to domestic producers
A trade agreement between two countries
A limit on the quantity of a good that can be imported
#15
In finance, what does the term 'diversification' refer to?
Investing in a single asset class
Spreading investments across different assets to reduce risk
The process of mergers and acquisitions
Maximizing short-term returns