#1
Which of the following is NOT considered a leading economic indicator?
Stock market performance
Unemployment rate
Consumer confidence index
Gross domestic product (GDP) growth
#2
What does CPI stand for in economics?
Consumer Price Index
Centralized Purchasing Index
Cost-Price Inflation
Corporate Price Indicator
#3
What is the main function of the Federal Reserve System in the United States?
To regulate international trade
To manage fiscal policy
To oversee commercial banks and control the money supply
To set government spending priorities
#4
What is 'Monetary Policy'?
Government's use of taxation and spending to influence the economy
Management of international trade agreements
Regulation of interest rates and money supply by the central bank
Control of money supply in the economy
#5
Which of the following is an example of a public good?
Food
Education
Clothing
Cars
#6
Which of the following is a component of GDP?
Government transfers
Private savings
Foreign aid
Investment spending
#7
Which of the following is a characteristic of perfect competition?
Large number of buyers and sellers
Product differentiation
Price control by firms
Barriers to entry
#8
What does the 'Phillips Curve' illustrate?
Relationship between inflation and unemployment
Effect of government spending on GDP
Demand and supply equilibrium
Impact of interest rates on investment
#9
What is fiscal policy?
Government's use of taxation and spending to influence the economy
Regulation of interest rates by the central bank
Control of money supply in the economy
Management of international trade agreements
#10
Which of the following is NOT a measure of income inequality?
Gini coefficient
Lorenz curve
Per capita GDP
Theil index
#11
What is the 'Multiplier Effect' in economics?
The effect of government spending on GDP growth
The effect of interest rate changes on investment
The effect of consumer confidence on stock market performance
The effect of an initial increase in spending on overall economic activity
#12
Which of the following is an example of a regressive tax?
Income tax
Sales tax
Property tax
Corporate tax
#13
What is the concept of 'opportunity cost' in economics?
The cost of goods and services
The cost of the next best alternative
The cost incurred in production
The cost of government policies
#14
What is the 'Laffer curve' in economics?
A graphical representation of the relationship between tax rates and tax revenue
A theory explaining consumer behavior in response to changes in income
A model depicting the impact of interest rates on investment
A concept describing the relationship between inflation and unemployment
#15
What is the 'quantity theory of money'?
A theory explaining the impact of changes in money supply on price levels
A model describing the relationship between interest rates and investment
A concept depicting the relationship between inflation and unemployment
A theory illustrating consumer behavior in response to changes in income
#16
What is the 'Paradox of Thrift'?
A situation where increased saving leads to decreased consumption and lower economic growth
A concept describing the relationship between inflation and unemployment
A theory explaining the impact of changes in money supply on price levels
A model illustrating the impact of interest rates on investment
#17
What is the 'Ricardian Equivalence'?
A theory suggesting that changes in government spending have no effect on aggregate demand
A model illustrating the relationship between interest rates and investment
A concept describing the relationship between inflation and unemployment
A hypothesis proposing that consumers are forward-looking and anticipate future tax changes
#18
What is 'Perfectly Inelastic Demand'?
When quantity demanded does not respond to changes in price
When quantity demanded is extremely sensitive to changes in price
When quantity demanded changes proportionally to changes in price
When quantity demanded changes more than proportionally to changes in price