#1
What does GDP stand for?
Gross Domestic Product
ExplanationMeasurement of a country's economic output.
#2
Which of the following is NOT a component of GDP?
Imports
ExplanationGoods and services produced abroad.
#3
What does the term 'Inflation' mean in economics?
Increase in the general price level of goods and services
ExplanationDecline in the purchasing power of a currency.
#4
What is the primary goal of monetary policy?
Stabilizing prices
ExplanationControl inflation and stabilize currency.
#5
What does the term 'Deflation' mean in economics?
Decrease in the general price level of goods and services
ExplanationOpposite of inflation, decrease in prices over time.
#6
What does CPI measure?
Consumer Price Index
ExplanationMeasure of average price changes over time in a market basket of goods and services.
#7
Which of the following is NOT a macroeconomic indicator?
Stock Price
ExplanationSpecific value representing ownership in a company.
#8
What does the term 'Fiscal Policy' refer to?
Government's management of taxation and spending
ExplanationUse of government spending and taxation to influence the economy.
#9
Which of the following is a tool of monetary policy?
Open Market Operations
ExplanationBuying and selling government securities to control money supply.
#10
What does the term 'Trade Balance' represent?
Difference between imports and exports
ExplanationNet exports of a country.
#11
What is the formula for calculating the unemployment rate?
(Number of unemployed / Labor force) x 100%
ExplanationPercentage of the labor force that is unemployed.
#12
What is the Phillips Curve used to illustrate?
The relationship between unemployment and inflation
ExplanationInverse relationship between unemployment rate and inflation rate.
#13
What is the formula for calculating GDP?
GDP = C + I + G + (X - M)
ExplanationTotal value of all goods and services produced in a country.
#14
Which of the following is an example of an automatic stabilizer?
Unemployment benefits
ExplanationGovernment programs that automatically help stabilize economy during economic fluctuations.
#15
What is the relationship between the money supply and interest rates according to the liquidity preference theory?
Inverse relationship
ExplanationInterest rates and money supply are inversely related.