#1
Which of the following is NOT a measure of central tendency in statistics?
Range
ExplanationRange measures variability, not central tendency.
#2
Gross Domestic Product (GDP) is a measure of:
Total value of goods and services produced within a country
ExplanationGDP represents the overall economic output of a nation.
#3
What does the Consumer Price Index (CPI) measure?
Changes in the prices of a basket of goods and services over time
ExplanationCPI reflects the cost change for a standard set of goods.
#4
Which of the following is NOT a characteristic of a perfectly competitive market?
Barriers to entry
ExplanationPerfect competition implies easy entry and exit.
#5
What is the Phillips Curve in economics?
A curve illustrating the relationship between inflation and unemployment
ExplanationShows inverse relation between unemployment and inflation.
#6
What does inflation measure?
Increase in the general price level of goods and services
ExplanationInflation quantifies the rise in prices over time.
#7
Which of the following is a component of the aggregate demand?
Government spending
ExplanationGovernment spending is a significant component of total demand.
#8
What is the formula to calculate GDP using the expenditure approach?
GDP = C + I + G + (X - M)
ExplanationAggregate demand components: consumption, investment, government spending, net exports.
#9
Which of the following is a characteristic of monopolistic competition?
Many sellers, differentiated products
ExplanationMany firms offering slightly different products.
#10
What does the Lorenz Curve represent?
Distribution of income or wealth among individuals or households
ExplanationGraphical representation of income distribution.
#11
What is the 'Laffer Curve' in economics?
A graphical representation of the relationship between tax rates and tax revenue
ExplanationIllustrates the point where tax revenue maximizes.
#12
What is the difference between nominal GDP and real GDP?
Real GDP is adjusted for inflation, while nominal GDP is not
ExplanationReal GDP accounts for price changes, nominal does not.
#13
What does the term 'opportunity cost' refer to in economics?
The cost of a particular choice in terms of the next best alternative forgone
ExplanationValue of the best alternative foregone.
#14
What is the difference between a recession and a depression?
Recession is a short-term decline in economic activity, while depression is a severe and prolonged recession
ExplanationDepression is deeper and more prolonged than recession.
#15
What is the difference between a progressive tax and a regressive tax?
Progressive tax takes a higher percentage of income from low-income earners, while regressive tax takes a higher percentage from high-income earners
ExplanationProgressive taxes aim for proportionality with income.