#1
What does the Gross Domestic Product (GDP) measure?
The total market value of all final goods and services produced within a country in a specific period
The total amount of money in circulation within a country
The total value of exports minus imports in a country
The total amount of money spent by consumers in a country
#2
What does the term 'Inflation' refer to in economics?
A decrease in the general price level of goods and services
An increase in the value of a currency
A sustained increase in the general price level of goods and services in an economy over a period of time
A decrease in the value of a currency
#3
What is the primary objective of monetary policy?
To control inflation and stabilize prices
To regulate government spending and taxation
To promote economic growth and development
To maintain a balanced budget
#4
In the context of trade, what does the term 'Trade Surplus' mean?
A situation where a country exports more goods and services than it imports
A situation where a country imports more goods and services than it exports
A situation where a country has a balanced trade between exports and imports
A situation where a country's currency is depreciating
#5
Which economic indicator is often referred to as a measure of the average level of prices of goods and services in an economy?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment rate
Personal Savings Rate
#6
What does the term 'Trade Surplus' refer to?
A situation where a country's exports exceed its imports
A situation where a country's imports exceed its exports
A situation where a country's exports and imports are equal
A situation where a country's trade deficit is at its maximum level
#7
Which of the following is considered a lagging indicator of economic well-being?
Gross Domestic Product (GDP)
Unemployment rate
Consumer Price Index (CPI)
Personal Savings Rate
#8
Which of the following is NOT a component of the Consumer Price Index (CPI)?
Food and beverages
Housing
Transportation
Corporate profits
#9
What does the term 'Fiscal Policy' refer to in economics?
Government policy concerning the setting of interest rates
Government policy concerning taxation and spending
Government policy concerning international trade
Government policy concerning the regulation of financial institutions
#10
Which of the following is a leading indicator of economic activity?
Gross Domestic Product (GDP)
Stock market performance
Personal Consumption Expenditures (PCE)
Industrial production index
#11
What is the difference between Nominal GDP and Real GDP?
Nominal GDP is adjusted for inflation, while Real GDP is not
Real GDP is adjusted for inflation, while Nominal GDP is not
Nominal GDP includes only domestic production, while Real GDP includes international production
Real GDP is calculated on an annual basis, while Nominal GDP is calculated quarterly
#12
What does the term 'Liquidity' refer to in economics?
The ease with which an asset can be converted into cash without affecting its market price
The total amount of money in circulation
The percentage change in the Consumer Price Index (CPI)
The rate of return on an investment
#13
Which of the following is NOT typically included in calculations of the Human Development Index (HDI)?
Life expectancy at birth
Gross National Income (GNI) per capita
Education attainment
Employment rate
#14
What is the Phillips Curve in economics?
A curve representing the relationship between inflation and unemployment
A curve representing the relationship between interest rates and investment
A curve representing the relationship between government spending and economic growth
A curve representing the relationship between exchange rates and trade balance
#15
What does the term 'Elasticity of Demand' measure?
The responsiveness of quantity demanded to a change in price
The total demand for a good or service in the market
The percentage change in income affecting demand
The sensitivity of supply to changes in demand
#16
What does the term 'Natural Rate of Unemployment' refer to?
The rate of unemployment that exists when the economy is at full employment
The rate of unemployment that exists due to cyclical fluctuations in the economy
The rate of unemployment that occurs when individuals are transitioning between jobs
The rate of unemployment that exists when there is a mismatch between the skills of workers and the available jobs
#17
What does the term 'Human Development Index (HDI)' measure?
Economic growth and development in a country
Quality of life and well-being in a country
Income inequality in a country
Political stability and government effectiveness in a country