#1
What does the Consumer Price Index (CPI) measure?
The cost of living for a typical urban household
ExplanationCPI measures changes in the cost of living.
#2
What does the unemployment rate measure?
The percentage of the labor force that is unemployed and actively seeking employment
ExplanationUnemployment rate measures joblessness in the labor force.
#3
What does the term 'trade deficit' refer to?
When a country's imports exceed its exports
ExplanationTrade deficit occurs when imports exceed exports.
#4
What is the main purpose of the Gross Domestic Product (GDP)?
To evaluate the overall health and size of a country's economy
ExplanationGDP measures the total value of goods and services produced within a country.
#5
What does the term 'business cycle' refer to in economics?
The periodic expansion and contraction of economic activity
ExplanationBusiness cycle depicts economic fluctuations.
#6
Which of the following is not considered a leading economic indicator?
Gross Domestic Product (GDP) growth rate
ExplanationLeading indicators anticipate future economic trends.
#7
What does the term 'GDP per capita' represent?
The average income of a country's population
ExplanationGDP per capita is GDP divided by the population.
#8
What is the purpose of the Producer Price Index (PPI)?
To measure changes in the prices received by domestic producers for their output
ExplanationPPI tracks changes in prices received by producers.
#9
Which of the following is not a component of Gross Domestic Product (GDP)?
Foreign Aid
ExplanationForeign aid is not included in GDP.
#10
What is the purpose of the Purchasing Managers' Index (PMI)?
To assess the performance of manufacturing sector
ExplanationPMI gauges manufacturing sector's health and expansion.
#11
Which of the following is a component of the Balance of Payments?
Trade Balance
ExplanationBalance of Payments records a country's economic transactions with the rest of the world.
#12
Which of the following indicators is used to gauge the level of economic inequality within a country?
Gini Coefficient
ExplanationGini Coefficient measures income or wealth inequality.