#1
Which of the following is considered a lagging indicator in economics?
Unemployment rate
ExplanationIt reflects past economic performance.
#2
What does GDP stand for?
Gross Domestic Product
ExplanationIt measures the total value of goods and services produced in a country.
#3
What does the term 'inflation' refer to in economics?
Increase in the general price level of goods and services
ExplanationIt erodes the purchasing power of money.
#4
Which of the following is NOT a leading economic indicator?
Unemployment rate
ExplanationIt typically changes after the economy has already shifted.
#5
Which of the following is NOT a measure of economic inequality?
Consumer Price Index (CPI)
ExplanationCPI measures changes in the price level of consumer goods.
#6
What does the term 'trade deficit' mean?
When a country's imports exceed its exports
ExplanationIt represents a negative balance of trade.
#7
Which of the following is not a component of GDP?
Imports
ExplanationImports are not produced domestically.
#8
What does the Gini coefficient measure?
Income inequality
ExplanationIt quantifies the distribution of income within a population.
#9
What does the term 'Fiscal Policy' refer to in economics?
Government's decisions on taxation and spending
ExplanationIt influences aggregate demand and economic activity.
#10
Which organization publishes the World Economic Outlook report?
International Monetary Fund (IMF)
ExplanationIt provides analysis of global economic trends.
#11
Which of the following is NOT a component of Aggregate Demand (AD)?
Imports
ExplanationAD consists of consumption, investment, government spending, and net exports.
#12
What is the Phillips Curve used to describe?
The relationship between inflation and unemployment
ExplanationIt suggests a trade-off between inflation and unemployment.
#13
Which country has the largest GDP (nominal) as of the latest available data?
United States
ExplanationIt has the highest total economic output.
#14
What is the main objective of the Purchasing Managers' Index (PMI)?
To gauge business activity and sentiment
ExplanationIt indicates the health of the manufacturing sector.
#15
Which of the following is NOT a criterion for being classified as a 'developed country'?
Large agricultural sector
ExplanationDeveloped countries typically have diverse economies.
#16
What is the Bretton Woods system?
An international monetary system established after World War II
ExplanationIt fixed exchange rates to the US dollar.
#17
What is the term used to describe a situation where the price level rises persistently over time?
Hyperinflation
ExplanationIt leads to rapidly decreasing purchasing power.