Macro Economics

Contents

#1. Which of the following is a characteristic of a monopoly?

Few sellers

Many sellers

One seller

Identical products

#2. What is inflation?

An increase in the general price level of goods and services

The total value of goods and services produced in a country

The rate at which a country's currency exchange rate fluctuates

A decrease in the general price level of goods and services

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

To provide economic aid to developing countries

To regulate international financial markets

To facilitate negotiations and enforce agreements on international trade

To promote global peace

#4. Which market structure is characterized by many buyers and sellers, identical products, and ease of entry?

Monopoly

Perfect competition

Oligopoly

Monopolistic competition

#5. The national debt is:

The difference between GDP and GNP

The total amount of money the government owes

The total value of exports

The total income of a nation

#6. What is the purpose of fiscal policy?

Influencing the overall level of economic activity

Controlling the money supply

Regulating international trade

Determining interest rates

#7. The term "Gini coefficient" is used to measure:

GDP growth

Unemployment rate

Income inequality

Inflation rate

#8. The Phillips curve illustrates the relationship between:

Government spending and GDP

Interest rates and investment

Inflation and unemployment

Consumer spending and savings

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

A country should only produce goods for its own consumption

A country can produce all goods more efficiently than another country

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

A country should protect its domestic industries with tariffs

#10. What is the role of the central bank in monetary policy?

Controlling interest rates and money supply

Regulating government spending

Setting tax policies

Managing international trade agreements

#11. What is the Phillips Curve?

A curve showing the relationship between supply and demand

A curve showing the relationship between inflation and unemployment

A curve showing the relationship between interest rates and investment

A curve showing the relationship between government spending and GDP

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

Price falls

Price remains constant

Price rises

Price fluctuates randomly

#13. What is the multiplier effect in economics?

The impact of government regulations on businesses

The effect of taxes on consumer behavior

The influence of interest rates on investment

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

#14. Fiscal policy involves:

Control of money supply by the central bank

Exchange rate management

Government's use of taxation and spending to influence the economy

Regulation of specific industries

#15. GDP stands for:

Gross Domestic Product

Global Development Plan

General Domestic Price

General Demand Projection

#16. What is the primary goal of monetary policy?

Maximizing government revenue

Price stability and full employment

Reducing income inequality

Economic growth

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

Monetary policy

Fiscal policy

Trade policy

Tax policy

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

Unemployment rate

Demand for smartphones

Consumer preferences

Price of a specific good

#19. The Laffer curve illustrates the relationship between:

Inflation and unemployment

Consumer spending and savings

Tax rates and government revenue

Exchange rates and international trade

#20. What is a trade deficit?

The total value of exports

Exports exceed imports

The balance between exports and imports

Imports exceed exports

#21. What is elasticity of demand?

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 revenue generated by a good

The total quantity of a good demanded at all possible prices

#22. Inflation is defined as:

Decrease in the production of goods

Increase in the overall price level of goods and services

Increase in the supply of money

Increase in exports

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

The value of the next best alternative forgone

The total cost of an item

The cost of goods and services

The cost of production

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

To control inflation

To promote economic growth

To increase government revenue

To import more goods and services than export

#25. The business cycle refers to:

Fluctuations in the stock market

Periodic expansion and contraction of economic activity

Government budget cycles

Changes in consumer preferences

Finish

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