#1
Which of the following is a basic economic resource?
Labor
ExplanationLabor is a fundamental economic resource, contributing to production and economic activity.
#2
Which of the following is a characteristic of a developed economy?
High per capita income
ExplanationDeveloped economies typically exhibit high per capita income levels, indicating a higher standard of living and economic development.
#3
What is the term for the percentage of the working-age population that is willing and able to work and is actively seeking employment?
Labor force participation rate
ExplanationThe labor force participation rate measures the proportion of the working-age population that is actively engaged in the labor market by seeking employment.
#4
What is the term for a situation where a country's exports exceed its imports, leading to a surplus in the balance of trade?
Trade surplus
ExplanationA trade surplus occurs when a country exports more goods and services than it imports, resulting in a positive balance of trade.
#5
What does GDP stand for in economics?
Gross Domestic Product
ExplanationGDP represents the total value of goods and services produced within a country's borders over a specific period.
#6
Which factor is NOT considered a component of human capital?
Financial Assets
ExplanationFinancial assets, while important, are not typically considered as part of human capital, which includes skills, knowledge, and abilities.
#7
In the context of economic development, what does the term 'FDI' stand for?
Foreign Direct Investment
ExplanationFDI refers to investments made by foreign entities into domestic businesses or infrastructure, stimulating economic growth and development.
#8
Which economic indicator is often used to measure income inequality within a country?
Gini coefficient
ExplanationThe Gini coefficient is a commonly used measure of income inequality within a population, indicating the distribution of income across different segments.
#9
Which economic system is characterized by private ownership of the means of production, profit motives, and market competition?
Capitalism
ExplanationCapitalism is an economic system where private individuals or businesses own and control the factors of production, and market forces determine prices and distribution of goods.
#10
In the context of economic development, what is 'brain drain'?
Migration of highly skilled individuals abroad
ExplanationBrain drain refers to the emigration of highly skilled or educated individuals from one country to another, often seeking better opportunities or working conditions.
#11
What is the term for a situation where prices for goods and services continue to rise?
Inflation
ExplanationInflation refers to the persistent increase in the general price level of goods and services in an economy over time.
#12
According to the Harrod-Domar model, what is the key determinant of economic growth?
Capital accumulation
ExplanationThe Harrod-Domar model suggests that the accumulation of capital, such as investment in physical assets, is crucial for economic growth.
#13
What is the term for the total value of goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationGross Domestic Product (GDP) represents the monetary value of all goods and services produced within a country's borders over a specified period.
#14
Which economic theory emphasizes the importance of supply-side policies, such as tax cuts and deregulation, to stimulate economic growth?
Neoliberalism
ExplanationNeoliberalism advocates for limited government intervention in the economy, favoring free markets, deregulation, and privatization to promote economic growth.
#15
Which of the following is an example of an economic indicator that reflects the overall health of an economy?
Both a and b
ExplanationBoth GDP and unemployment rate are examples of economic indicators that reflect the overall health and performance of an economy.
#16
According to the Solow-Swan model, what is the primary driver of long-term economic growth?
Technological progress
ExplanationTechnological progress, including innovation and advancements, is considered the primary driver of long-term economic growth in the Solow-Swan model.