#1
What is Gross Domestic Product (GDP) used to measure?
Economic growth
ExplanationIndicator of a country's economic performance.
#2
Which of the following is NOT a component of GDP?
Imports
ExplanationTransactions outside a country's production.
#3
What is the primary goal of monetary policy?
Stabilizing prices
ExplanationControlling inflation and deflation.
#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 Domestic Product (GDP)
ExplanationSum of a nation's economic output.
#5
Which of the following is NOT a type of unemployment?
Monetary unemployment
ExplanationUnemployment due to money-related issues.
#6
What is the term for a situation in which the government spends more money than it collects in revenue?
Fiscal deficit
ExplanationImbalance between government spending and revenue.
#7
What does the Phillips Curve depict?
Relationship between inflation and unemployment
ExplanationTrade-off between inflation and unemployment rates.
#8
What is the concept of 'opportunity cost' in economics?
The value of the next best alternative forgone
ExplanationCost of forgoing the next best alternative.
#9
What is the equation of the Quantity Theory of Money?
M x P = V x Q
ExplanationRelates money supply, velocity, price level, and output.
#10
Which of the following best describes the concept of 'elasticity' in economics?
The responsiveness of quantity demanded to a change in price
ExplanationSensitivity of demand to price changes.
#11
What does the term 'deflation' refer to in macroeconomics?
A sustained decrease in the general price level of goods and services
ExplanationPersistent decline in overall price levels.
#12
Which of the following is NOT a function of money?
Unit of debt
ExplanationMedium of exchange, store of value, and unit of account.
#13
Which of the following is NOT a tool of fiscal policy?
Open market operations
ExplanationPrimarily controlled by central banks.
#14
What is the primary function of a central bank in a country's economy?
To regulate commercial banks
ExplanationOversees banking system and monetary policy.
#15
Which of the following is a characteristic of a market economy?
Private ownership of resources
ExplanationDecisions made by individuals and firms.
#16
What is the 'Laffer Curve' in economics?
A curve showing the relationship between tax rates and government revenue
ExplanationIllustrates optimal tax rates.
#17
What is the 'IS-LM model' used to analyze in macroeconomics?
Monetary policy
ExplanationInteractions between interest rates and output.
#18
Which of the following is a feature of a command economy?
Centralized decision-making by the government
ExplanationGovernment controls production and distribution.