#1
Which of the following is a measure of a country's economic health?
GDP per capita
ExplanationIndicator of average economic well-being in a country.
#2
What does GDP stand for?
Gross Domestic Product
ExplanationTotal value of all goods and services produced within a country.
#3
Which economic indicator measures the total value of goods and services produced within a country in a specific time period?
Gross Domestic Product (GDP)
ExplanationPrimary gauge of a nation's economic output.
#4
In economics, what does the acronym 'PPP' stand for?
Purchasing Power Parity
ExplanationComparative value of currencies to determine exchange rates.
#5
What is the term used to describe a situation where the government spends more money than it receives in revenue?
Fiscal deficit
ExplanationBudgetary shortfall resulting from excessive spending.
#6
Which of the following is a characteristic of a recession?
Low consumer spending
ExplanationDecreased consumer expenditure, indicating economic contraction.
#7
Which economic measure reflects the percentage change in the general price level over a period?
Inflation rate
ExplanationIndicator of rising prices impacting purchasing power.
#8
What is fiscal policy?
Government's use of taxation and spending to influence the economy
ExplanationUtilizing taxes and expenditure to manage economic activities.
#9
What is a trade surplus?
When a country exports more goods than it imports
ExplanationExcess of exports over imports, indicating economic strength.
#10
What does the term 'fiscal deficit' refer to?
When government spending exceeds government revenue
ExplanationBudget shortfall due to excessive government spending.
#11
What is the main objective of trade policy?
To promote free trade agreements with other countries
ExplanationEncourages open commerce between nations.
#12
What is the main factor that determines a country's comparative advantage in international trade?
Resource endowment and technology
ExplanationAvailability of resources and technological prowess.
#13
What is the main purpose of monetary policy?
To regulate the money supply and interest rates
ExplanationControl of currency circulation and borrowing costs to stabilize the economy.
#14
What does the term 'stagflation' refer to?
A situation of high inflation and high unemployment combined with slow economic growth
ExplanationEconomic stagnation coupled with inflation and unemployment.
#15
What is the primary objective of supply-side economics?
To reduce taxes and regulations to stimulate economic growth
ExplanationFocuses on tax cuts and deregulation to boost production.
#16
What does the term 'Laffer Curve' represent?
A graphical representation of the relationship between tax rates and tax revenue
ExplanationIllustrates the point at which tax rates maximize revenue.