#1
Which of the following is a common measure of a country's economic performance?
GDP (Gross Domestic Product)
ExplanationGDP is a key indicator of a country's economic health, representing the total value of all goods and services produced.
#2
What does WTO stand for?
World Trade Organization
ExplanationWTO is an international organization that deals with global rules of trade between nations.
#3
What does FDI stand for in economics?
Foreign Direct Investment
ExplanationFDI refers to investments made by a firm or individual in a foreign country's business or assets.
#4
What is the term for a situation where a country exports more goods and services than it imports?
Trade surplus
ExplanationA trade surplus occurs when a country exports more than it imports, leading to a positive balance.
#5
What is the term for a situation where a government spends more money than it collects in revenue?
Budget deficit
ExplanationA budget deficit occurs when a government's expenditures exceed its revenues.
#6
Which economic concept refers to a situation where the price of a product increases as its demand increases?
Price gouging
ExplanationPrice gouging is the unethical practice of charging excessively high prices during times of increased demand.
#7
What is the term for a tax on imports or exports?
Tariff
ExplanationA tariff is a tax imposed on imported or exported goods to regulate trade.
#8
What is the term for the total value of a country's exports minus the total value of its imports?
Trade deficit
ExplanationA trade deficit occurs when a country imports more goods and services than it exports.
#9
Which international agreement aims to combat climate change by reducing greenhouse gas emissions?
Paris Agreement
ExplanationThe Paris Agreement is a global effort to address climate change by reducing greenhouse gas emissions.
#10
Which economic indicator measures the average change in prices of goods and services over time?
Consumer Price Index (CPI)
ExplanationCPI measures inflation by tracking the average change in prices of a basket of goods and services.
#11
Which economic theory advocates for minimal government intervention in the economy?
Classical economics
ExplanationClassical economics emphasizes the importance of free markets and limited government involvement.