#1
Which of the following is NOT a component of GDP?
Exports
ExplanationExports are not included in GDP calculations.
#2
In macroeconomics, what does CPI stand for?
Consumer Price Index
ExplanationCPI stands for Consumer Price Index.
#3
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
ExplanationInflation is a sustained increase in the general price level over time.
#4
What is the main objective of monetary policy?
To control inflation
ExplanationMonetary policy aims to control inflation.
#5
What is the meaning of the term 'deflation' in economics?
A decrease in the general price level of goods and services in an economy
ExplanationDeflation is a decrease in the general price level over time.
#6
What is the formula for calculating GDP?
GDP = Consumption + Investment + Government Spending + Net Exports
ExplanationGDP is the sum of consumption, investment, government spending, and net exports.
#7
What is the unemployment rate if there are 8 million unemployed people and the labor force participation rate is 65% with a total population of 200 million?
4%
ExplanationUnemployment rate is calculated as the ratio of unemployed people to the labor force, multiplied by 100.
#8
What is the formula for calculating unemployment rate?
Unemployment rate = (Number of unemployed people / Labor force) × 100
ExplanationUnemployment rate is the ratio of unemployed people to the labor force, multiplied by 100.
#9
Which of the following is included in the calculation of Gross National Product (GNP) but not Gross Domestic Product (GDP)?
Net income earned abroad
ExplanationNet income earned abroad is included in GNP but not GDP.
#10
What is the difference between real GDP and nominal GDP?
Real GDP is adjusted for inflation, while nominal GDP is not.
ExplanationReal GDP accounts for inflation, while nominal GDP does not.
#11
Which of the following is a measure of income inequality?
Gini coefficient
ExplanationThe Gini coefficient measures income inequality.
#12
Which of the following best describes the term 'balance of payments'?
A record of all economic transactions between the residents of one country and the rest of the world
ExplanationBalance of payments records all economic transactions between a country and the rest of the world.
#13
Which of the following is true about the velocity of money?
It represents the number of times a unit of money is spent within a specific period.
ExplanationVelocity of money measures how quickly money circulates in the economy.
#14
What is the significance of the Laffer Curve in economics?
It demonstrates the relationship between tax rates and tax revenue
ExplanationThe Laffer Curve shows the relationship between tax rates and tax revenue.