#1
Which of the following is NOT a macroeconomic indicator?
Stock Price of a Single Company
ExplanationMacroeconomic indicators focus on broader economic trends and aggregates.
#2
What does the term 'trade surplus' mean?
When a country's exports exceed its imports
ExplanationA trade surplus occurs when a country sells more goods and services abroad than it imports.
#3
What is the purpose of the Purchasing Managers' Index (PMI) in macroeconomics?
To gauge business activity and sentiment in manufacturing and services sectors
ExplanationPMI provides insights into economic conditions by measuring the purchasing activities of businesses.
#4
What does the Consumer Price Index (CPI) measure?
Changes in the price level of a market basket of consumer goods and services purchased by households
ExplanationCPI reflects inflation by tracking the cost of a typical basket of goods and services.
#5
Which of the following is an example of a capital account transaction?
An individual buys shares of a foreign company
ExplanationCapital account transactions involve financial assets and liabilities between a country and the rest of the world.
#6
What is the balance of trade?
The difference between a country's exports and imports of goods and services
ExplanationBalance of trade measures the economic relationship between a country and its trading partners.
#7
In the context of international trade, what does the term 'dumping' refer to?
Selling goods in a foreign market at a price below their production cost
ExplanationDumping is an unfair trade practice that can harm domestic industries.
#8
Which of the following is NOT considered a component of aggregate demand?
Domestic savings
ExplanationAggregate demand includes consumption, investment, government spending, and net exports, but not domestic savings.
#9
What does the term 'terms of trade' refer to in international trade?
The relative prices of a country's exports compared to its imports
ExplanationTerms of trade measure the economic value of a country's exports relative to its imports.