#1
Which of the following is a component of GDP?
Government spending
Imports
Private savings
Household debt
#2
What does GDP stand for?
Gross Domestic Production
General Domestic Product
Gross Domestic Product
General Domestic Production
#3
What is the term for a period of declining economic activity spread across the economy lasting more than a few months?
Stagflation
Depression
Recession
Deflation
#4
Which of the following is a characteristic of an expansionary fiscal policy?
Decrease in government spending
Increase in taxes
Decrease in money supply
Increase in government spending
#5
What is the term for a sustained increase in the general price level of goods and services in an economy over a period of time?
Inflation
Deflation
Stagflation
Hyperinflation
#6
Which of the following is NOT a component of aggregate demand?
Consumption
Investment
Government spending
Imports
#7
What is the term for the total market value of all final goods and services produced within a country in a given period of time?
Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#8
Which of the following represents a contractionary monetary policy?
Decrease in interest rates
Increase in government spending
Increase in money supply
Increase in interest rates
#9
What is the Phillips curve used to depict?
The relationship between inflation and unemployment
The relationship between GDP and government spending
The relationship between savings and investment
The relationship between interest rates and investment
#10
What does the term 'crowding out' refer to in economics?
An increase in government spending stimulates private investment
An increase in government borrowing reduces private investment
A decrease in government spending stimulates private investment
A decrease in government borrowing reduces private investment
#11
Which of the following is an example of a leading economic indicator?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Stock market index
Unemployment rate
#12
What is the term for the situation when the inflation rate is high, economic growth is slow, and unemployment remains high?
Inflation
Deflation
Stagflation
Hyperinflation
#13
Which of the following best describes the concept of 'liquidity trap'?
A situation where interest rates are high and savings are low
A situation where interest rates are low and savings are high
A situation where monetary policy becomes ineffective
A situation where fiscal policy becomes ineffective
#14
What is the term for a situation where the value of a country's currency declines relative to other currencies?
Appreciation
Depreciation
Inflation
Deflation
#15
Which of the following is a measure of income inequality?
Consumer Price Index (CPI)
Gini coefficient
Inflation rate
Producer Price Index (PPI)
#16
In the business cycle, what typically follows the trough?
Expansion
Peak
Recession
Depression
#17
What is the term for a situation where the government spends more money than it collects in revenue?
Budget deficit
Budget surplus
National debt
Public debt
#18
What is the term for a situation where an increase in income leads to a less than proportional increase in consumption?
Malthusian Trap
Keynesian Paradox
Marginal Propensity to Consume
Income Elasticity of Demand
#19
Which of the following best describes the concept of 'comparative advantage'?
The ability of a country to produce a good at a lower opportunity cost than another country
The ability of a country to produce a good using fewer resources than another country
The ability of a country to produce all goods more efficiently than another country
The ability of a country to produce goods without considering opportunity costs