#1
What is Gross Domestic Product (GDP) used to measure?
Unemployment rate
Inflation rate
Economic growth
Interest rates
#2
Which of the following is NOT a component of GDP?
Government spending
Investment
Imports
Exports
#3
What is the primary goal of monetary policy?
Stabilizing prices
Managing government spending
Promoting economic growth
Ensuring equitable income distribution
#4
What is the term for the total value of all final goods and services produced within a country's borders in a specific period?
Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#5
Which of the following is NOT a type of unemployment?
Frictional unemployment
Structural unemployment
Cyclical unemployment
Monetary unemployment
#6
What is the term for a situation in which the government spends more money than it collects in revenue?
Fiscal surplus
Fiscal deficit
Trade surplus
Trade deficit
#7
What does the Phillips Curve depict?
Relationship between inflation and unemployment
Relationship between GDP and inflation
Relationship between interest rates and inflation
Relationship between investment and GDP
#8
What is the concept of 'opportunity cost' in economics?
The cost of production
The benefit of consuming a good or service
The value of the next best alternative forgone
The total cost incurred in a transaction
#9
What is the equation of the Quantity Theory of Money?
M x V = P x Q
M x P = V x Q
P x V = M x Q
Q x V = M x P
#10
Which of the following best describes the concept of 'elasticity' in economics?
The ability of a good to be produced at a lower cost
The responsiveness of quantity demanded to a change in price
The total revenue generated from sales
The percentage change in income due to a change in price
#11
What does the term 'deflation' refer to in macroeconomics?
A sustained decrease in the general price level of goods and services
An increase in the money supply
An increase in government spending
A decrease in the interest rate
#12
Which of the following is NOT a function of money?
Medium of exchange
Store of value
Unit of debt
Unit of account
#13
Which of the following is NOT a tool of fiscal policy?
Taxation
Government spending
Open market operations
Transfer payments
#14
What is the primary function of a central bank in a country's economy?
To regulate commercial banks
To set fiscal policy
To control inflation
To distribute social welfare benefits
#15
Which of the following is a characteristic of a market economy?
Central planning by the government
Private ownership of resources
Equal distribution of income
Low levels of competition
#16
What is the 'Laffer Curve' in economics?
A curve illustrating the relationship between taxes and government spending
A curve depicting the relationship between inflation and unemployment
A curve showing the relationship between tax rates and government revenue
A curve demonstrating the relationship between interest rates and investment
#17
What is the 'IS-LM model' used to analyze in macroeconomics?
Fiscal policy
Monetary policy
Trade policy
Income distribution
#18
Which of the following is a feature of a command economy?
Private ownership of the means of production
Market-driven allocation of resources
Centralized decision-making by the government
Competition among firms