Question 1

Which of the following best defines Gross Domestic Product (GDP)?

Accepted Answer

The total dollar value of all final goods and services produced within a country's borders in a specific time period

Answer

The total value of exports minus imports

Answer

The total income of all citizens in a country

Answer

The total number of employed individuals in a country

Question 2

What is the primary purpose of fiscal policy?

Accepted Answer

To influence the economy through government spending and taxation

Answer

To ensure equal distribution of wealth

Answer

To regulate the money supply

Answer

To control inflation through interest rates

Question 3

What is the law of demand?

Accepted Answer

As the price of a good decreases, the quantity demanded increases, and vice versa

Answer

As the price of a good decreases, the quantity supplied increases

Answer

As the price of a good increases, the quantity demanded increases

Answer

As consumer income decreases, the demand for all goods decreases

Question 4

What is a market economy?

Accepted Answer

An economic system where decisions about production and consumption are made by individual consumers and businesses

Answer

An economy that operates under a single currency

Answer

A system exclusively based on barter transactions

Answer

An economic system controlled entirely by the government

Question 5

What does the term 'opportunity cost' refer to in economics?

Accepted Answer

The value of the next best alternative that must be given up when a choice is made

Answer

The cost of producing goods and services

Answer

The benefits received from a decision

Answer

The total costs involved in a transaction

Question 6

What is the aggregate demand curve?

Accepted Answer

A curve that shows the total quantity of goods and services demanded across all levels of the economy at various price levels

Answer

A curve that depicts the total production of goods and services at different price levels

Answer

A curve that shows the relationship between interest rates and savings

Answer

A curve that illustrates how much money is available in the economy at different levels of inflation

Question 7

What is the primary function of the Federal Reserve?

Accepted Answer

To manage the nation's monetary policy and regulate the banking system

Answer

To provide direct financial assistance to consumers

Answer

To collect taxes and manage government spending

Answer

To control the distribution of natural resources

Question 8

What does GDP stand for in macroeconomics?

Accepted Answer

Gross Domestic Product

Answer

General Domestic Payment

Answer

Gross Development Plan

Answer

Global Debt Product

Question 9

What is the primary objective of monetary policy?

Accepted Answer

To control inflation and stabilize the currency

Answer

To increase government spending

Answer

To reduce taxes on corporations

Answer

To regulate trade balances

Question 10

Which of the following is considered a leading economic indicator?

Accepted Answer

Stock market performance

Answer

Consumer Price Index

Answer

Unemployment rate

Answer

Gross Domestic Product

Question 11

What characterizes a recession in economic terms?

Accepted Answer

A decline in real GDP for two consecutive quarters

Answer

A rise in unemployment for one month

Answer

A decrease in stock prices

Answer

An increase in consumer spending

Question 12

Which phase of the business cycle is characterized by rising economic activity and increasing employment?

Accepted Answer

Expansion

Answer

Peak

Answer

Recession

Answer

Trough

Question 13

What is considered an automatic stabilizer in an economy?

Accepted Answer

Unemployment insurance

Answer

Increased military spending

Answer

Government stimulus checks

Answer

Tax cuts

Question 14

What is the primary purpose of fiscal policy?

Accepted Answer

To influence economic activity through government spending and taxation

Answer

To control the money supply

Answer

To regulate stock market transactions

Answer

To set interest rates

Question 15

What term describes the total market value of all final goods and services produced within a country in a specific time period?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Consumer Price Index (CPI)

Answer

Net Domestic Product (NDP)

Answer

Gross National Product (GNP)

Question 16

What happens to demand when there is an increase in consumer income, assuming all other factors remain constant?

Accepted Answer

Demand increases

Answer

Demand decreases

Answer

Demand remains unchanged

Answer

Demand becomes more elastic

Question 17

What are the four factors of production?

Accepted Answer

Land, Labor, Capital, Entrepreneurship

Answer

Capital, Labor, Services, Profit

Answer

Land, Labor, Money, Resources

Answer

Goods, Services, Investment, Labor

Question 18

What does GDP stand for in economics?

Accepted Answer

Gross Domestic Product

Answer

General Development Program

Answer

Gross Domestic Price

Answer

General Domestic Price

Question 19

Which of the following is a consequence of inflation?

Accepted Answer

Decreased purchasing power

Answer

Stable prices

Answer

Increased employment

Answer

Higher interest rates

Question 20

What is meant by opportunity cost?

Accepted Answer

The value of the next best alternative foregone

Answer

The cost of the best alternative chosen

Answer

The total cost of production

Answer

The money spent on an investment

Question 21

Which economic model describes the circular flow of income?

Accepted Answer

The Circular Flow Model

Answer

The Classical Model

Answer

The Supply and Demand Model

Answer

The Keynesian Model

Question 22

What is fiscal policy primarily concerned with?

Accepted Answer

Government spending and taxation

Answer

Interest rates and money supply

Answer

Exchange rates and trade balance

Answer

Consumer spending and investment

Question 23

What is the primary goal of monetary policy?

Accepted Answer

To control inflation and stabilize the currency

Answer

To achieve full employment

Answer

To increase government spending

Answer

To reduce taxes

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