Economics - Economic Indicators MCQ Test 2

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

2. What does the term 'inflation targeting' involve?

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

4. Which economic term refers to a prolonged period of economic decline with high unemployment and falling output?

5. What is 'Gini Coefficient' used for?

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

7. What is 'Laffer Curve' related to?

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

9. What is fiscal policy concerned with?

10. What is the primary objective of monetary policy?

11. What does the term 'interest rate' represent?

12. What does a negative trade balance indicate?

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

14. What does the term 'stagflation' refer to?

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

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

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

18. What is the 'Misery Index'?

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

20. What does the Laffer Curve illustrate?

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

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

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

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

25. What does GDP stand for?

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

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

28. Which economic indicator measures the total value of goods and services produced within a country in a specific period?

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

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

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

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

33. Which economic concept suggests that consumers can be influenced by changes in their perceived wealth?

34. Which economic theory emphasizes the role of expectations and animal spirits in influencing economic decisions?

35. What does the term 'market equilibrium' signify?

36. What does the 'Stagflation' refer to?

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

38. What does the term 'liquidity trap' refer to in the context of monetary policy?

39. Which economic theory emphasizes the importance of supply-side policies in promoting economic growth?

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