#1
Which of the following is a primary economic goal of a country?
Minimizing unemployment
ExplanationFocus on reducing unemployment rates to enhance economic well-being.
#2
What is the main objective of a central bank's monetary policy?
Stabilize prices and promote economic growth
ExplanationAims to maintain price stability and encourage economic growth.
#3
What is the term for the total value of goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationRepresents the overall value of goods and services produced in a country.
#4
Which economic system is characterized by private ownership of the means of production and market-based allocation of resources?
Capitalism
ExplanationFeatures private ownership and market-driven resource allocation.
#5
Which economic indicator is often used to assess the overall health of the labor market?
Unemployment Rate
ExplanationCommonly utilized to evaluate the well-being of the labor market.
#6
What is fiscal policy?
Government's use of taxation and spending to influence the economy
ExplanationRefers to the government's manipulation of taxes and spending to impact economic conditions.
#7
Which economic policy aims to increase overall production and economic growth?
Supply-side policy
ExplanationTargets boosting economic growth by enhancing the supply of goods and services.
#8
What is the Laffer Curve used to illustrate in economic policy?
The relationship between tax rates and government revenue
ExplanationDemonstrates the impact of tax rates on government revenue.
#9
In the context of international trade, what does 'protectionism' refer to?
Imposing barriers to protect domestic industries
ExplanationInvolves implementing barriers to safeguard domestic industries from foreign competition.
#10
Which economic policy aims to control the money supply and interest rates to achieve economic goals?
Monetary policy
ExplanationInvolves managing the money supply and interest rates to attain economic objectives.
#11
In macroeconomics, what does the term 'stagflation' refer to?
High inflation and high unemployment occurring simultaneously
ExplanationDescribes a situation with both elevated inflation and unemployment rates.
#12
What is the term for the measure of responsiveness of quantity demanded to a change in price?
Elasticity
ExplanationQuantifies how demand adjusts to changes in price.
#13
What is the Phillips Curve used to analyze?
The relationship between inflation and unemployment
ExplanationExamines the correlation between inflation levels and unemployment rates.
#14
Which economic philosophy advocates for minimal government intervention in the economy?
Classical liberalism
ExplanationSupports limited government involvement in economic affairs.
#15
Which economic indicator measures the average prices of goods and services consumed by households?
Consumer Price Index (CPI)
ExplanationCalculates the average cost of goods and services used by households.
#16
What is the primary focus of supply-side economics?
Boosting economic growth by enhancing the supply of goods and services
ExplanationConcentrates on increasing economic growth by improving the availability of goods and services.
#17
Which economic indicator is often considered a lagging indicator in analyzing the business cycle?
Unemployment Rate
ExplanationTypically lags behind in reflecting changes in the business cycle.
#18
What is the main objective of a trade surplus for a country?
Increase foreign exchange reserves
ExplanationAims to enhance foreign exchange reserves by exporting more than importing.
#19
Which economic concept emphasizes the idea that individuals and firms act in their own self-interest to maximize utility or profit?
Rational choice theory
ExplanationHighlights the pursuit of self-interest for maximizing individual or firm benefit.