Macro Economics

Contents

#1. What is a progressive tax?

A tax where the rate increases as income increases

A tax on imports

A tax on goods and services

A tax where everyone pays the same amount

#2. The term "stagflation" refers to:

Stable prices and full employment

Rapid economic growth

A recession followed by a boom

High inflation and high unemployment occurring simultaneously

#3. What is the role of the World Trade Organization (WTO)?

To provide economic aid to developing countries

To facilitate negotiations and enforce agreements on international trade

To promote global peace

To regulate international financial markets

#4. What is the purpose of fiscal policy?

Regulating international trade

Determining interest rates

Controlling the money supply

Influencing the overall level of economic activity

#5. What is the law of diminishing marginal utility?

The more you consume of a good, the greater the satisfaction

The more you consume of a good, the less additional satisfaction you get

The less you consume of a good, the greater the satisfaction

The less you consume of a good, the less additional satisfaction you get

#6. The business cycle refers to:

Government budget cycles

Changes in consumer preferences

Periodic expansion and contraction of economic activity

Fluctuations in the stock market

#7. What does GDP stand for?

General Demand and Production

Government Development Program

Goods and Services Distribution

Gross Domestic Product

#8. In the context of supply and demand, what happens to price when there is a surplus of goods?

Price falls

Price rises

Price remains constant

Price fluctuates randomly

#9. What is the concept of comparative advantage in international trade?

A country should focus on producing goods where it has the lowest opportunity cost

A country should only produce goods for its own consumption

A country can produce all goods more efficiently than another country

A country should protect its domestic industries with tariffs

#10. What is the term for the total value of all goods and services produced by a country in a specific time period?

NNP

GDP

GNP

NDP

#11. What is the purpose of automatic stabilizers in fiscal policy?

To control inflation

To regulate international trade

To influence interest rates

To automatically adjust government spending and taxes during economic fluctuations

#12. What is the multiplier effect in economics?

The effect of taxes on consumer behavior

The impact of government regulations on businesses

The influence of interest rates on investment

The impact of an initial change in spending on the overall economy

#13. In economics, what does the term "opportunity cost" refer to?

The cost of production

The total cost of an item

The cost of goods and services

The value of the next best alternative forgone

#14. What is a trade deficit?

Exports exceed imports

The total value of exports

The balance between exports and imports

Imports exceed exports

#15. What is the purpose of the Consumer Price Index (CPI)?

Measures the overall health of the stock market

Determines interest rates

Tracks changes in consumer preferences

Measures changes in the cost of a basket of goods and services

#16. Which economic system relies on market forces to determine prices and allocate resources?

Market economy

Traditional economy

Mixed economy

Command economy

#17. Inflation is defined as:

Increase in the overall price level of goods and services

Decrease in the production of goods

Increase in the supply of money

Increase in exports

#18. What is elasticity of demand?

The total revenue generated by a good

The percentage change in quantity demanded divided by the percentage change in income

The responsiveness of quantity demanded to a change in price

The total quantity of a good demanded at all possible prices

#19. What is the basic economic problem all societies face?

Equality

Scarcity

Abundance

Surplus

#20. The national debt is:

The total amount of money the government owes

The total value of exports

The difference between GDP and GNP

The total income of a nation

#21. What is the role of the World Bank in the global economy?

Providing financial assistance and development projects to developing countries

Regulating international trade

Enforcing trade agreements

Controlling exchange rates

#22. What is the function of the Federal Reserve in the United States?

Fiscal policy

Trade policy

Tax policy

Monetary policy

#23. Which of the following is a macroeconomic indicator?

Demand for smartphones

Consumer preferences

Unemployment rate

Price of a specific good

#24. What is the Phillips Curve?

A curve showing the relationship between supply and demand

A curve showing the relationship between government spending and GDP

A curve showing the relationship between inflation and unemployment

A curve showing the relationship between interest rates and investment

#25. What is the purpose of a trade deficit?

To import more goods and services than export

To increase government revenue

To promote economic growth

To control inflation

Finish

Results