#1
Which of the following is a leading economic indicator?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Stock Market Index
Unemployment Rate
#2
Which of the following is a lagging economic indicator?
Stock Market Index
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment Rate
#3
What does the term 'opportunity cost' mean in economics?
The cost of purchasing goods and services
The value of the best alternative forgone when a decision is made
The cost of production for a firm
The cost of government intervention in the market
#4
Which economic concept is represented by the term 'stagflation'?
Rapid economic growth with low inflation
High unemployment with low inflation
Simultaneous high inflation and high unemployment
Stable economic conditions with low interest rates
#5
What is the economic concept known as the 'Liquidity Trap'?
A situation where interest rates are high, leading to decreased borrowing and spending.
A situation where interest rates are low, but people hoard money instead of spending or investing.
A condition where inflation rates are unpredictable and fluctuating.
A scenario where government debt exceeds the country's GDP.
#6
What is the formula for calculating GDP (Gross Domestic Product)?
Consumption + Investment + Government Spending + (Exports - Imports)
Consumption + Savings + Taxes
Income - Expenses
Government Revenue - Government Expenditure
#7
Which economic metric is used to measure the overall health of the labor market?
Inflation Rate
Participation Rate
Consumer Price Index (CPI)
Producer Price Index (PPI)
#8
What is the primary goal of monetary policy?
Stabilizing prices and controlling inflation
Managing government spending
Regulating international trade
Addressing income inequality
#9
In the context of economics, what does the term 'elasticity' refer to?
The responsiveness of quantity demanded to a change in price
The ratio of government debt to GDP
The level of government intervention in the market
The degree of market competition
#10
Which economic system is characterized by private ownership of the means of production and free market competition?
Command economy
Mixed economy
Market economy
Traditional economy
#11
What is the significance of the Laffer Curve in economic theory?
It illustrates the relationship between inflation and unemployment.
It shows the impact of taxes on consumer behavior.
It depicts the connection between government spending and GDP growth.
It demonstrates the relationship between tax rates and government revenue.
#12
What is the difference between fiscal policy and monetary policy?
Fiscal policy is controlled by the central bank, while monetary policy is controlled by the government.
Fiscal policy involves government spending and taxation, while monetary policy involves the supply of money and interest rates.
Fiscal policy and monetary policy are the same thing.
Monetary policy focuses on government budgets, while fiscal policy focuses on interest rates.
#13
What is the Phillips Curve used to illustrate in economics?
The relationship between inflation and unemployment.
The relationship between interest rates and investment.
The impact of taxes on consumer behavior.
The connection between government spending and GDP growth.
#14
What is the purpose of the Consumer Price Index (CPI) in economic analysis?
To measure changes in the overall cost of living
To assess the health of the stock market
To monitor international trade balances
To gauge the level of government debt
#15
In macroeconomics, what is the difference between nominal GDP and real GDP?
Nominal GDP includes inflation, while real GDP is adjusted for inflation.
Real GDP includes inflation, while nominal GDP is adjusted for inflation.
Nominal GDP only considers government spending, while real GDP includes all economic activities.
Real GDP only considers exports, while nominal GDP includes imports.
#16
In international trade, what does a trade surplus indicate for a country?
The country exports more than it imports.
The country imports more than it exports.
The country has balanced trade.
The country has a high level of inflation.
#17
What is the role of the Federal Reserve in the United States?
Fiscal policy formulation
Controlling inflation through interest rates and monetary policy
International trade negotiations
Executive branch oversight