#1
What does GDP stand for in economics?
Gross Domestic Product
ExplanationTotal value of all goods and services produced within a country's borders.
#2
What is the primary measure of economic growth in a country?
Gross Domestic Product (GDP)
ExplanationTotal value of goods and services produced within a country.
#3
Which sector of the economy includes activities such as farming, fishing, and mining?
Primary sector
ExplanationInvolves extraction and production of raw materials.
#4
Which of the following is considered a lagging economic indicator?
Unemployment rate
ExplanationReflects economic performance after changes have already occurred.
#5
Which component of GDP represents the total value of goods and services produced within a country's borders?
Consumption
ExplanationSpending by households on goods and services.
#6
Which economic indicator is often referred to as a measure of inflation?
Consumer Price Index (CPI)
ExplanationTracks changes in prices of a basket of goods and services.
#7
In GDP calculations, how is net exports calculated?
Exports - Imports
ExplanationDifference between what a country sells abroad and what it imports.
#8
What does the term 'Recession' in economics refer to?
A prolonged economic downturn with negative GDP growth
ExplanationPeriod of economic decline marked by reduced economic activity.
#9
Which of the following is an example of a leading economic indicator?
Stock market indices
ExplanationReflects investor sentiment about future economic prospects.
#10
What is the formula for calculating GDP using the income approach?
GDP = Wages + Rent + Interest + Profits
ExplanationSum of all incomes earned within an economy.
#11
What is the primary purpose of the Leading Economic Index (LEI)?
To predict future economic activity
ExplanationForecasts economic trends based on various indicators.
#12
Which economic indicator measures the total value of all goods and services produced by a country's residents, regardless of their location?
Gross National Product (GNP)
ExplanationTotal output by residents of a country, includes foreign earnings.
#13
What is the primary difference between Real GDP and Nominal GDP?
Real GDP accounts for inflation, while Nominal GDP does not
ExplanationAdjusts GDP for price changes over time.
#14
Which of the following is an example of a coincident economic indicator?
Average weekly hours worked
ExplanationChanges in line with current economic conditions.
#15
What is the relationship between the unemployment rate and the business cycle?
Unemployment is pro-cyclical, rising during economic expansions and falling during contractions
ExplanationTends to increase during economic downturns and decrease during expansions.