#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
ExplanationQuantifies a nation's economic output.
#2
What does the term 'Inflation' refer to in economics?
A sustained increase in the general price level of goods and services in an economy over a period of time
ExplanationErodes purchasing power over time.
#3
What is the primary objective of monetary policy?
To control inflation and stabilize prices
ExplanationAchieving price stability and sustainable economic growth.
#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
ExplanationExcess of exports over imports.
#5
Which economic indicator is often referred to as a measure of the average level of prices of goods and services in an economy?
Consumer Price Index (CPI)
ExplanationReflects inflationary pressures.
#6
What does the term 'Trade Surplus' refer to?
A situation where a country's exports exceed its imports
ExplanationPositive balance of trade.
#7
Which of the following is considered a lagging indicator of economic well-being?
Personal Savings Rate
ExplanationReflects past economic performance.
#8
Which of the following is NOT a component of the Consumer Price Index (CPI)?
Corporate profits
ExplanationNot directly related to consumer prices.
#9
What does the term 'Fiscal Policy' refer to in economics?
Government policy concerning taxation and spending
ExplanationInfluences economic activity through government actions.
#10
Which of the following is a leading indicator of economic activity?
Stock market performance
ExplanationAnticipates future economic trends.
#11
What is the difference between Nominal GDP and Real GDP?
Real GDP is adjusted for inflation, while Nominal GDP is not
ExplanationReal GDP accounts for changes in price levels.
#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
ExplanationMeasure of asset convertibility.
#13
Which of the following is NOT typically included in calculations of the Human Development Index (HDI)?
Employment rate
ExplanationNot a direct measure of human development.
#14
What is the Phillips Curve in economics?
A curve representing the relationship between inflation and unemployment
ExplanationIllustrates the trade-off between inflation and unemployment.
#15
What does the term 'Elasticity of Demand' measure?
The responsiveness of quantity demanded to a change in price
ExplanationSensitivity of demand to price changes.
#16
What does the term 'Natural Rate of Unemployment' refer to?
The rate of unemployment that exists when the economy is at full employment
ExplanationEquilibrium level of unemployment.
#17
What does the term 'Human Development Index (HDI)' measure?
Quality of life and well-being in a country
ExplanationCombines health, education, and income measures.