Economic Phenomena and Indicators Quiz

Unemployment rate is a lagging, not leading, economic indicator.

GDP stands for Gross Domestic Product, representing the total value of goods and services produced in a country.

NAFTA stands for North American Free Trade Agreement, promoting trade between North American countries.

The Gini coefficient measures income inequality within a population.

Capitalism relies on supply and demand to determine prices and allocate resources in the economy.

The 'Misery Index' is often associated with the Unemployment Rate.

'Stagflation' refers to the rare occurrence of high inflation and high unemployment simultaneously.

The Phillips Curve is used to analyze the trade-off between inflation and unemployment.

The World Bank's primary function is to provide monetary assistance to developing countries for development projects.

'Opportunity cost' represents the cost of choosing one option over the next best alternative.

David Ricardo is known for the theory of comparative advantage in international trade.

The Triffin Dilemma is a dilemma related to global imbalances and the role of the U.S. dollar in the international monetary system.

The Laffer Curve illustrates the relationship between tax rates and tax revenue, suggesting that there is an optimal tax rate for maximizing revenue.

The Federal Reserve System is responsible for issuing the world's reserve currency, the U.S. dollar.

'Crowding out' in macroeconomics refers to increased government spending leading to higher interest rates and reduced private investment.