#1
Which of the following is a measure of inflation?
GDP
CPI
Unemployment rate
Trade balance
#2
What does GDP stand for?
Gross Domestic Product
Global Domestic Product
Gross Development Product
Global Development Product
#3
What does the term 'Fiscal Policy' refer to?
Government's regulation of interest rates
Government's management of tax rates and spending
Central bank's control over money supply
International trade agreements
#4
What is the formula for calculating the consumer price index (CPI)?
CPI = (Total Expenditures / Total Consumption) × 100
CPI = (Total Consumption / Total Expenditures) × 100
CPI = (Current Price Index / Base Price Index) × 100
CPI = (Base Price Index / Current Price Index) × 100
#5
What is the equation of the quantity theory of money?
MV = PQ
MV = PT
M = PQ / V
P = MV / Q
#6
What is the formula for calculating GDP?
GDP = C + I + G + (X - M)
GDP = C + I + NX
GDP = C + I + G + NX
GDP = C + I + G - (X - M)
#7
What does the 'Phillips Curve' depict?
Relationship between unemployment and inflation
Relationship between GDP and inflation
Relationship between interest rates and inflation
Relationship between wages and employment
#8
What is the main goal of monetary policy?
To stabilize employment
To stabilize prices
To regulate foreign trade
To promote economic growth
#9
Which of the following is a component of aggregate demand?
Consumer spending (C)
Government spending (G)
Investment spending (I)
All of the above
#10
Which of the following is a measure of economic growth?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment rate
Inflation rate
#11
What does the term 'Multiplier Effect' describe in economics?
The tendency of inflation to persist over time
The tendency of consumer spending to influence investment
The magnified impact of initial spending on overall economic activity
The impact of interest rates on consumer saving behavior
#12
What is the term used to describe the situation when the economy experiences negative GDP growth for two consecutive quarters?
Recession
Depression
Expansion
Stagflation
#13
Which of the following represents the 'Laffer Curve'?
Relationship between government spending and inflation
Relationship between tax rates and government revenue
Relationship between interest rates and investment
Relationship between GDP and unemployment
#14
What is the primary tool used by central banks to control the money supply?
Fiscal policy
Open market operations
Exchange rate policy
Quantitative easing
#15
What does the term 'stagflation' refer to?
High inflation and low unemployment
High inflation and high unemployment
Low inflation and low unemployment
Low inflation and high unemployment
#16
What is the formula for the unemployment rate?
(Number of unemployed / Labor force) × 100
(Number of employed / Labor force) × 100
(Number of employed / Number of unemployed) × 100
(Number of unemployed / Total population) × 100
#17
Which of the following is NOT a tool of monetary policy?
Open market operations
Discount rate
Government spending
Reserve requirements
#18
What is the 'Natural Rate of Unemployment'?
The lowest rate of unemployment achievable without causing inflation
The rate of unemployment during a recession
The rate of unemployment when the economy is at full employment
The rate of unemployment at which wages are at their highest
#19
What is the primary goal of a central bank?
Maximize government revenue
Minimize inflation
Maximize employment
Ensure financial stability