#1
Which of the following is NOT a component of GDP?
Government spending
Consumer spending
Imports
Unemployment rate
#2
What does CPI stand for in macroeconomics?
Consumer Price Index
Corporate Profit Indication
Cost Per Investment
Consumer Payment Indicator
#3
What is the primary goal of monetary policy?
Maximizing employment
Minimizing inflation
Stabilizing exchange rates
All of the above
#4
Which of the following is a measure of income inequality?
GDP per capita
Gini coefficient
Poverty rate
Human Development Index
#5
What is the concept of 'opportunity cost' in economics?
The total cost of producing a good or service
The cost of an alternative that must be forgone in order to pursue a certain action
The cost of labor and raw materials
The total expenses incurred in marketing a product
#6
Which of the following is a fiscal policy tool?
Interest rates
Money supply
Government spending
Foreign exchange rates
#7
What does the Phillips Curve illustrate?
Relationship between inflation and unemployment
Relationship between government spending and taxation
Relationship between interest rates and investment
Relationship between exports and imports
#8
What does the term 'liquidity trap' refer to?
A situation where interest rates are extremely high
A situation where monetary policy becomes ineffective
A situation where banks have excess reserves
A situation where inflation is uncontrollable
#9
What is the formula for calculating GDP?
GDP = C + I + G + (X - M)
GDP = C + I + G + NX
GDP = C + S + T + M
GDP = C + I + T + G
#10
What is the name of the organization responsible for setting monetary policy in the United States?
International Monetary Fund (IMF)
World Bank
Federal Reserve (Fed)
European Central Bank (ECB)
#11
Which of the following is a characteristic of a recession?
Rising GDP
Low inflation
High employment
Declining consumer spending
#12
What does the term 'crowding out' refer to in economics?
An increase in government spending leads to a decrease in private investment
A decrease in government spending leads to an increase in private investment
An increase in government spending leads to an increase in private investment
A decrease in government spending leads to a decrease in private investment
#13
What is the role of the Central Bank in controlling inflation?
Increasing government spending
Decreasing taxes
Controlling the money supply
Encouraging borrowing
#14
What is the name of the economic theory that suggests government intervention is necessary to correct market failures?
Classical economics
Keynesian economics
Monetarism
Neoclassical economics
#15
What is the term used to describe a situation where the overall price level is decreasing?
Inflation
Hyperinflation
Deflation
Stagflation