Economics - Economic Indicators MCQ Test 1

1. What is the primary tool used by central banks to control inflation?

2. What does 'Deflation' signify?

3. Which term describes the responsiveness of quantity demanded to a change in price?

4. What does GDP stand for?

5. What does the 'Human Development Index (HDI)' measure?

6. Which economic concept refers to a situation where resources are allocated efficiently in the absence of market failures?

7. Which economic concept refers to the responsiveness of quantity demanded to a change in price?

8. Which economic indicator provides information about the general health of an economy over a period?

9. What does the term 'nominal GDP' refer to?

10. Which of the following best describes the concept of an 'inflationary gap'?

11. Which economic theory suggests that people adjust their expectations of inflation based on available information?

12. What is the 'Misery Index'?

13. What is the primary objective of fiscal policy during an economic downturn?

14. What is the primary objective of a central bank?

15. Which of the following best describes 'inflation'?

16. Which of the following is NOT a component of GDP?

17. What is the opposite of a budget deficit?

18. Which of the following represents a contractionary monetary policy?

19. What does the Laffer Curve illustrate?

20. Which economic indicator provides insight into a country's international trade balance?

21. What is the primary objective of contractionary fiscal policy?

22. What does the term 'trade deficit' signify?

23. Which economic theory emphasizes the role of aggregate demand in influencing economic growth?

24. Which economic term refers to a market situation where there is only one seller of a particular product or service?

25. What does the term 'supply and demand' represent?

26. Which of the following is a tool of expansionary fiscal policy?

27. What is the primary objective of monetary policy?

28. What is 'Laffer Curve' related to?

29. What is the term for a situation where the general price level of goods and services is falling?

30. Which economic theory argues that consumers and businesses make decisions based on rational expectations and self-interest?

31. What does the term 'fiscal policy' refer to?

32. Which term refers to the total value of goods and services produced by an economy?

33. In the context of the Phillips Curve, what does a negative correlation between inflation and unemployment imply?

34. What does the unemployment rate represent?

35. Which economic theory advocates for minimal government intervention in the economy?

36. Which economic indicator is a measure of an economy's overall health but does not account for population size?

37. What is the primary goal of expansionary monetary policy?

38. What does the term 'crowding out' refer to in the context of fiscal policy?

39. What is 'Gini Coefficient' used for?

40. What is the primary determinant of a country's potential output in the long run?

41. What does a negative trade balance indicate?

42. Which economic concept refers to the total value of a country's exports minus the total value of its imports?

43. What is the term for a situation where the government intervenes in the economy to correct market failures?

44. What does the 'Big Mac Index' reflect?

45. Which economic term refers to the total value of all final goods and services produced within a country in a given period?

46. What does the term 'monetary policy' refer to?

47. Which term describes a situation where production of a good imposes costs on third parties not involved in the transaction?

48. Which economic indicator measures the average change over time in the prices paid by consumers for a basket of goods and services?

49. What does the term 'interest rate' signify?

50. What does the term 'deflation' signify?