#1
What does the term 'GDP per capita' measure?
Average income per person in a country
ExplanationCalculates the average economic output per person, indicating the standard of living.
#2
What does the term 'Balance of Trade' measure?
Difference between imports and exports of goods and services
ExplanationIndicates a country's trade surplus or deficit.
#3
What does the term 'Fiscal Policy' refer to?
Government's use of taxation and spending to influence the economy
ExplanationInvolves government actions to manage the economy through revenue and expenditure.
#4
Which of the following is a characteristic of a recession?
Rising unemployment rates
ExplanationHigh unemployment is a common feature of economic downturns.
#5
What does the term 'Inflation' refer to?
Increase in the general price level of goods and services over time
ExplanationReflects a sustained rise in the prices of goods and services.
#6
What does the term 'Foreign Direct Investment (FDI)' refer to?
Investment in domestic assets by foreign entities
ExplanationInvolves foreign entities investing in the domestic economy for long-term gains.
#7
Which of the following is considered a leading indicator of economic activity?
Stock Market Index
ExplanationTracks overall market sentiment and reflects investors' confidence in the economy.
#8
What does the Big Mac Index compare to assess currency valuation?
Cost of purchasing a Big Mac in different countries
ExplanationCompares currency valuation based on a standardized product's price across nations.
#9
Which of the following is NOT a factor affecting economic growth?
Population size
ExplanationWhile population size matters, it alone doesn't determine economic growth.
#10
What is the primary purpose of the World Bank?
Providing financial assistance for development projects in developing countries
ExplanationSupports projects to reduce poverty and enhance economic development in less developed nations.
#11
Which of the following is NOT a goal of sustainable development?
Maximization of corporate profits
ExplanationSustainable development emphasizes social, economic, and environmental goals, not just corporate profits.
#12
What is the main purpose of the Purchasing Managers' Index (PMI)?
To gauge business activity and sentiment in manufacturing sector
ExplanationProvides insights into the health of the manufacturing industry.
#13
Which of the following is NOT a component of the Human Development Index (HDI)?
Stock market performance
ExplanationHDI focuses on education, life expectancy, and income, excluding stock market performance.
#14
Which of the following is NOT a measure of income inequality?
Purchasing Power Parity (PPP)
ExplanationPPP relates to currency exchange rates, not income distribution.
#15
Which of the following is NOT a component of the Global Competitiveness Index (GCI)?
Population growth rate
ExplanationGCI assesses factors like infrastructure and innovation but not population growth.