#1
Which of the following is not considered one of the primary economic goals?
Income inequality
ExplanationNot a goal but a challenge in economic policy.
#2
Which economic goal aims to ensure that the standard of living of a population is improving over time?
Economic growth
ExplanationReflects the increase in real GDP over time.
#3
Which economic goal focuses on maintaining a stable level of prices in an economy?
Price stability
ExplanationAims to prevent excessive inflation or deflation.
#4
Which of the following is NOT a factor of production in economics?
Money
ExplanationFunctions as a medium of exchange rather than a factor of production.
#5
Which of the following is NOT a characteristic of a market economy?
Centralized planning
ExplanationRelies on decentralized decision-making.
#6
What is the primary goal of fiscal policy?
Promote economic growth
ExplanationFiscal policy aims to stimulate economic activity.
#7
Which economic goal focuses on ensuring that resources are used efficiently to produce goods and services?
Economic efficiency
ExplanationEfficient allocation and utilization of resources.
#8
Which economic indicator is commonly used to measure income inequality?
Gini coefficient
ExplanationQuantifies the degree of income distribution.
#9
What is the primary tool used by central banks to implement monetary policy?
Interest rates
ExplanationAdjusting interest rates to influence economic activities.
#10
Which of the following is an example of a supply-side policy aimed at achieving economic goals?
Decreasing income taxes
ExplanationEncourages production and economic growth.
#11
What term describes a situation where the economy's production is operating at its maximum potential?
Full employment
ExplanationAll available resources are efficiently utilized.
#12
What is the main objective of monetary policy?
Regulate money supply and interest rates
ExplanationInfluences economic activity through money supply control.
#13
Which of the following is not a characteristic of a developed economy?
High unemployment rates
ExplanationDeveloped economies maintain low unemployment.
#14
Which of the following is a long-term economic goal aimed at improving the quality of life and well-being of a society?
Sustainable development
ExplanationBalancing economic growth with environmental and social factors.
#15
Which economic theory suggests that government intervention is necessary to regulate economic activity and achieve stability?
Keynesian economics
ExplanationAdvocates for government spending to stimulate demand.
#16
What is the term used to describe a situation where the rate of inflation slows down?
Disinflation
ExplanationInflation rate decreases over time.