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Economic Indicators and Measures Quiz

#1

Which of the following is not considered a leading economic indicator?

Gross Domestic Product (GDP)
Explanation

GDP is a lagging indicator.

#2

Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?

Consumer Price Index (CPI)
Explanation

CPI tracks inflation.

#3

Which of the following is not a measure of unemployment?

Consumer Price Index (CPI)
Explanation

CPI measures inflation, not unemployment.

#4

What does the term 'Inflation' refer to in economics?

Increase in the overall level of prices of goods and services
Explanation

General rise in prices.

#5

Which of the following is NOT a component of the Consumer Price Index (CPI)?

Government spending
Explanation

CPI reflects consumer prices.

#6

What does the term 'yield curve' represent in economic terms?

The graphical representation of bond yields across different maturities
Explanation

It shows interest rate trends.

#7

Which of the following is not a component of calculating Gross Domestic Product (GDP)?

Unemployment rate
Explanation

Unemployment rate is a separate metric.

#8

Which of the following is a measure of income inequality within a population?

Gini Coefficient
Explanation

Quantifies income distribution.

#9

What does the term 'Balance of Trade' represent?

The difference between exports and imports of goods
Explanation

Trade surplus or deficit.

#10

What does the term 'Recession' refer to in economics?

A temporary decline in economic activity
Explanation

Negative GDP growth for two quarters.

#11

What does the Purchasing Managers' Index (PMI) measure?

The level of manufacturing activity in an economy
Explanation

Indicates economic health of manufacturing.

#12

What is the primary objective of fiscal policy?

To manage government revenue and expenditure to influence the economy
Explanation

Control economic growth.

#13

What is the 'Phillips Curve' in economics?

A graphical representation of the relationship between unemployment and inflation
Explanation

Shows inverse relationship.

#14

What is the primary purpose of the Consumer Confidence Index (CCI)?

To measure the level of consumer optimism and pessimism about the economy
Explanation

Indicator of consumer spending.

#15

Which economic indicator measures the level of employment in an economy?

Unemployment Rate
Explanation

Percentage of jobless people.

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