#1
What is the main cause of inflation?
Decrease in the money supply
Increase in aggregate demand
Decrease in consumer spending
Decrease in production costs
#2
Which of the following factors does NOT contribute to economic growth?
Increase in productivity
Decrease in investments
Technological advancements
Human capital development
#3
Which of the following is NOT a component of Gross Domestic Product (GDP)?
Government spending
Exports
Unemployment benefits
Consumer spending
#4
Which of the following is a characteristic of a mixed economy?
Government controls all economic activities
Private individuals own all resources
Economic decisions are made solely by the market
Both government and private individuals play a role in economic decision-making
#5
Which of the following is NOT a characteristic of a market economy?
Private ownership of resources
Centralized planning by the government
Economic decisions made by individuals and firms
Prices determined by supply and demand
#6
Which of the following is a characteristic of an economic recession?
Decrease in unemployment rates
Increase in consumer spending
Decline in GDP for two consecutive quarters
Expansionary monetary policy
#7
Which of the following is a leading economic indicator?
Stock prices
GDP growth rate
Consumer confidence index
Inflation rate
#8
What is the primary tool used by central banks to control the money supply?
Fiscal policy
Monetary policy
Trade policy
Supply-side policy
#9
Which of the following is a characteristic of an economic boom?
High unemployment rates
Decrease in consumer spending
Rapid GDP growth
Tight monetary policy
#10
What is the term used to describe a sustained period of economic decline?
Recession
Expansion
Depression
Inflation
#11
What does the term 'stagflation' refer to in economics?
High inflation and low unemployment
Low inflation and high unemployment
Low inflation and low unemployment
High inflation and high unemployment
#12
Which of the following is a consequence of deflation?
Increased purchasing power of money
Decreased real interest rates
Increased borrowing by consumers
Increased consumer spending
#13
What is the term for a sudden, severe, and prolonged downturn in economic activity?
Stagflation
Boom
Depression
Expansion
#14
Which of the following factors can cause a shift in the long-run aggregate supply curve?
Changes in consumer preferences
Technological advancements
Fiscal policy changes
Changes in interest rates