#1
Which of the following is NOT a leading economic indicator?
Unemployment rate
ExplanationLeading economic indicators predict future economic trends, and the unemployment rate is a lagging indicator reflecting past economic conditions.
#2
Gross Domestic Product (GDP) measures:
Total value of goods and services produced in a country
ExplanationGDP measures the overall economic output of a country, including goods and services produced.
#3
Which of the following is NOT considered a component of GDP?
Household savings
ExplanationGDP measures the value of goods and services produced, and household savings are not directly included in this calculation.
#4
Which of the following is a lagging economic indicator?
Average duration of unemployment
ExplanationLagging indicators, like the average duration of unemployment, reflect past economic performance and are used to confirm trends.
#5
The Consumer Price Index (CPI) measures changes in:
The cost of a fixed basket of goods and services
ExplanationCPI tracks the average change over time in prices paid by consumers for a fixed basket of goods and services.
#6
Which of the following is a measure of income inequality?
Gini coefficient
ExplanationThe Gini coefficient quantifies the degree of income inequality within a population.
#7
Which of the following factors does NOT affect economic growth?
Government regulations
ExplanationWhile regulations play a role in the economy, they are not typically considered a direct factor influencing economic growth.
#8
What is the 'Phillips Curve' used to illustrate?
The relationship between inflation and unemployment
ExplanationThe Phillips Curve depicts the historical trade-off between inflation and unemployment rates.
#9
Which of the following is NOT a component of the Balance of Payments?
Fiscal account
ExplanationThe Balance of Payments includes the current account, capital account, and financial account, but not a fiscal account.