Economics Quiz

What does PPC or PPF stand for in economics?

• Price purchasing coefficient

• Production possibility curve or frontier

• Product performance classification

• Purchasing power parity

How is Real GDP calculated?

• Real GDP = Current year production X Current year prices

• Real GDP = Nominal GDP X GDP deflator

• Real GDP = 100 X (Nominal GDP)/(GDP deflator)

• Real GDP = Nominal GDP - GDP deflator

What is the formula to calculate the Consumer Inflation rate?

• Consumer Inflation rate = 100 X (CPI new - CPI old)/CPI old

• Consumer Inflation rate = (CPI new - CPI old)/CPI old

• Consumer Inflation rate = 100 X (CPI old - CPI new)/CPI new

• Consumer Inflation rate = (CPI old - CPI new)/CPI new

What does the equation MPC + MPS = 1 signify?

• The sum of the marginal propensity to consume and produce equals one

• The sum of the marginal propensity to consume and marginal propensity to save equals one

• The sum of the market price coefficient and market price stability equals one

• The sum of the marginal price change and marginal savings proportion equals one

What represents equilibrium in the loanable fund market?

• S = I

• S = D

• S = Qs

• S = Qd

Which of the following best describes the term 'Gross Domestic Product'?

• The total market value of all final goods and services produced within a country in a given period

• The total market value of all intermediate goods produced within a country in a given period

• The sum of all wages paid within a country in a given period

• The total export value minus the total import value of a country in a given period

What does the term 'monetary policy' refer to?

• The process of drafting, announcing, and implementing the plan of actions taken by the central bank, currency board, or other competent regulatory authority of a country to control the supply of money

• The fiscal actions taken by a government to influence its economy

• The regulations governing the amount of money banks must keep in reserve

• The decisions made by a country to regulate its import and export activities

What is meant by 'fiscal policy'?

• The policies related to the taxation and expenditure of a government

• The policies governing the regulation of a country's money supply

• The strategies used by a government to regulate the exchange rate of its currency

• The guidelines for regulating the stock market and other securities markets

Opportunity cost is best defined as:

• The cost of purchasing raw materials for production.

• The cost associated with not choosing the next best alternative.

• The total expenses incurred in the production process.

• The price at which goods are sold in the market.

What does the Production Possibilities Frontier (PPF) illustrate?

• The maximum output that can be produced with a given set of resources and technology.

• The minimum resources required to produce a given level of output.

• The constant opportunity cost between two goods.

• The varying levels of consumer demand for two goods.