#1
What does the term 'Gini coefficient' measure in economics?
Income inequality
ExplanationQuantifies income distribution.
#2
What does the acronym 'GDP' stand for in economics?
Gross Domestic Product
ExplanationTotal value of goods and services produced.
#3
Which of the following is a component of the expenditure approach to calculating GDP?
Government spending
ExplanationGovernment consumption and investment.
#4
What is the formula for calculating Gross Domestic Product (GDP) using the expenditure approach?
GDP = Consumption + Investment + Government Spending + Net Exports
ExplanationSum of all spending in an economy.
#5
Which of the following is an example of a final good or service in the calculation of GDP?
A laptop purchased by a student for school
ExplanationProduct intended for end use.
#6
Which of the following is considered a lagging indicator of economic activity?
Unemployment rate
ExplanationReflects past economic performance.
#7
Which of the following is NOT a component of GDP?
Unemployment benefits
ExplanationNot counted as production.
#8
Which of the following is NOT a method of calculating GDP?
Asset approach
ExplanationNot a recognized approach.
#9
What does the term 'recession' mean in economics?
A sustained period of economic decline
ExplanationCharacterized by negative growth.
#10
What does the term 'deflation' refer to in economics?
A decrease in the general price level of goods and services
ExplanationOpposite of inflation.
#11
Which of the following is NOT a measure of economic inequality?
Consumer Price Index (CPI)
ExplanationMeasures inflation, not inequality.
#12
What does the term 'stagflation' refer to in economics?
A period of high inflation and low economic growth
ExplanationCombination of inflation and stagnation.
#13
Which economic indicator is used to measure the average change in prices received by domestic producers for their output?
Producer Price Index (PPI)
ExplanationTracks price changes at producer level.
#14
Which of the following is NOT a leading economic indicator?
Gross Domestic Product (GDP)
ExplanationReflects past performance.
#15
What is the primary purpose of the unemployment rate?
To measure the percentage of the labor force that is unemployed and actively seeking employment
ExplanationAssesses labor market conditions.
#16
What does the term 'fiscal policy' refer to in economics?
Government's use of taxation and spending to influence the economy
ExplanationManipulating government revenue and spending.
#17
Which of the following is an example of a leading economic indicator?
Average weekly initial jobless claims
ExplanationPredicts future economic trends.