#1
Which of the following is a component of GDP?
Government spending
Exports
Imports
All of the above
#2
What does the unemployment rate measure?
The percentage of people in the labor force who are employed
The percentage of people in the population who are unemployed
The percentage of people in the labor force who are unemployed
The percentage of people in the population who are employed
#3
Which of the following is a measure of economic growth?
Gini coefficient
Real GDP per capita
Consumer Price Index (CPI)
Labor force participation rate
#4
What is the primary tool used by central banks to influence monetary policy?
Fiscal policy
Reserve requirements
Open market operations
Government spending
#5
What is the primary goal of monetary policy?
Maximizing employment
Stabilizing prices
Promoting economic growth
Reducing income inequality
#6
Which of the following is NOT a component of aggregate demand (AD)?
Consumption (C)
Investment (I)
Government spending (G)
Imports (M)
#7
In the IS-LM model, what does the LM curve represent?
Equilibrium in the goods market
Equilibrium in the money market
Equilibrium in the labor market
Equilibrium in the foreign exchange market
#8
What is the relationship between inflation and unemployment known as?
The Phillips Curve
The Lorenz Curve
The Engel Curve
The Laffer Curve
#9
Which of the following best describes the concept of 'crowding out'?
Increase in government spending leads to a decrease in private investment
Decrease in government spending leads to an increase in private investment
Increase in government spending leads to an increase in private investment
Decrease in government spending leads to a decrease in private investment
#10
What does the term 'stagflation' refer to?
High inflation and high unemployment occurring simultaneously
Low inflation and low unemployment occurring simultaneously
High inflation and low unemployment occurring simultaneously
Low inflation and high unemployment occurring simultaneously
#11
What does the term 'liquidity trap' refer to in macroeconomics?
A situation where interest rates are very high
A situation where interest rates are very low
A situation where monetary policy is ineffective
A situation where fiscal policy is ineffective
#12
What does the term 'deflation' refer to?
A sustained increase in the general price level
A sustained decrease in the general price level
A situation where the economy is growing too fast
A situation where the economy is contracting
#13
What is the formula for calculating the velocity of money?
MV = PQ
M = PY
V = PY/M
V = PQ/M
#14
What is the name of the index that measures the average prices received by producers?
Consumer Price Index (CPI)
Gross Domestic Product (GDP) deflator
Producer Price Index (PPI)
Retail Price Index (RPI)
#15
Which of the following best describes the concept of 'comparative advantage'?
A country's ability to produce a good at a lower opportunity cost than another country
A country's ability to produce a good using fewer resources than another country
A country's ability to produce a good at a lower price than another country
A country's ability to produce a good with higher quality than another country