#1
Which of the following is a component of Gross Domestic Product (GDP)?
Government spending
Exports
Imports
All of the above
#2
What is inflation?
A decrease in the general price level of goods and services
An increase in the general price level of goods and services
A measure of economic growth
A decrease in the value of money
#3
What is the primary function of the stock market?
To provide loans to individuals and businesses
To regulate the financial industry
To facilitate the buying and selling of stocks and other securities
To set interest rates
#4
What is the term used to describe a situation where the total value of a country's imports exceeds the total value of its exports?
Trade deficit
Trade surplus
Balance of payments
Current account
#5
What is the term used to describe the percentage of the labor force that is unemployed and actively seeking employment?
Labor force participation rate
Unemployment rate
Employment-to-population ratio
Underemployment rate
#6
What is fiscal policy?
Government policy related to taxation and spending
Central bank policy related to interest rates and money supply
International trade policy
Monetary policy
#7
What is the term used to describe the total value of all final goods and services produced within a country's borders in a given time period?
Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#8
What is the role of the Federal Reserve in the United States?
Fiscal policy
Monetary policy
Trade policy
Environmental policy
#9
What is the 'Phillips curve' in economics?
A curve showing the relationship between interest rates and investment
A curve showing the relationship between inflation and unemployment
A curve showing the relationship between government spending and GDP
A curve showing the relationship between exchange rates and trade balance
#10
What does GDP stand for?
Gross Domestic Profit
General Development Policy
Gross Domestic Product
Government Distribution Program
#11
What is the term used to describe the measure of the total value of goods and services produced within a country's borders in a specific period?
Net national product
Gross national product
Gross domestic product
Net domestic product
#12
What is the term used to describe the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling?
Deflation
Stagflation
Hyperinflation
Inflation
#13
What is the role of the Securities and Exchange Commission (SEC) in financial markets?
Regulating banks
Regulating stock exchanges
Setting interest rates
Managing government debt
#14
What is the term used to describe a situation where prices for goods and services rise, but wages do not keep pace, leading to a decrease in purchasing power?
Deflation
Stagflation
Hyperinflation
Cost-push inflation
#15
What is quantitative easing?
Increasing interest rates to control inflation
Reducing the money supply to combat inflation
Buying government securities to increase the money supply
Selling government securities to decrease the money supply
#16
What is a bond?
A form of currency
An ownership stake in a company
A loan made by an investor to a borrower
A type of stock exchange
#17
What is the 'Taylor Rule' in economics?
A rule for setting fiscal policy
A rule for setting monetary policy
A rule for international trade negotiations
A rule for corporate governance
#18
What is the term used to describe the rate at which a country's currency can be exchanged for another currency?
Exchange rate
Interest rate
Inflation rate
Currency rate
#19
What is the term used to describe a situation where the economy experiences both inflation and high unemployment simultaneously?
Stagflation
Deflation
Hyperinflation
Recession