Q1: 1. Which of the following best defines macroeconomics?

• A) Study of individual consumer behavior
• B) Study of the economy as a whole
• C) Study of microeconomic principles
• D) Study of international trade

Q2: 2. What is the main focus of macroeconomics?

• A) Individual consumer choices
• B) Government intervention in markets
• C) Aggregate economic indicators
• D) Business management strategies

Q3: 3. Which of the following is NOT a macroeconomic variable?

• A) Unemployment rate
• B) National income
• C) Price of a specific good
• D) GDP (Gross Domestic Product)

Q4: 4. Which of the following is an example of a fiscal policy tool?

• A) Setting interest rates
• B) Adjusting tax rates
• C) Regulating banks
• D) Controlling money supply

Q5: 5. What does GDP measure?

• A) Total population of a country
• B) Total value of all goods and services produced in a country
• C) Total government spending in a country
• D) Total exports of a country

Q6: 6. Inflation is defined as

• A) Decrease in the general price level of goods and services
• B) Increase in the general price level of goods and services
• C) Stable prices in the economy
• D) Fluctuations in exchange rates

Q7: 7. Which of the following best describes the concept of unemployment rate?

• A) Percentage of people not in the labor force
• B) Percentage of people with jobs in the labor force
• C) Percentage of people actively seeking employment
• D) Percentage of people retired from the workforce

Q8: 8. What is the role of the central bank in managing the economy?

• A) Implementing fiscal policies
• B) Regulating stock markets
• C) Controlling inflation and interest rates
• D) Managing government budgets

Q9: 9. Which of the following is a measure of income inequality?

• A) Gini coefficient
• B) GDP per capita
• C) Consumer Price Index (CPI)
• D) Poverty rate

Q10: 10. What is the purpose of economic indicators?

• A) To predict stock market trends
• B) To measure economic performance
• C) To regulate international trade
• D) To determine consumer preferences

Q11: 11. Which of the following is an example of monetary policy tool?

• A) Government spending
• B) Tax cuts
• C) Open market operations
• D) Trade agreements

Q12: 12. What is the relationship between inflation and unemployment known as?

• A) Phillips Curve
• B) Laffer Curve
• C) Supply and Demand curve
• D) Production Possibility Frontier

Q13: 13. Which of the following is an example of expansionary fiscal policy?

• A) Increasing government spending
• B) Raising taxes
• C) Decreasing money supply
• D) Tightening regulations on businesses

Q14: 14. What is the goal of economic stabilization policies?

• A) Achieving full employment and stable prices
• B) Maximizing corporate profits
• C) Reducing government debt
• D) Promoting international trade

Q15: 15. The business cycle refers to

• A) Long-term economic trends
• B) Short-term fluctuations in economic activity
• C) Stock market performance
• D) Global economic integration

Q16: 16. Which of the following is a measure of economic growth?

• A) Consumer confidence index
• B) Balance of trade
• C) Real GDP growth rate
• D) Industrial production index

Q17: 17. What is the role of government in macroeconomics?

• A) To limit market competition
• B) To ensure fair distribution of wealth
• C) To provide public goods and services
• D) To maximize corporate profits

Q18: 18. Which of the following is an example of a leading economic indicator?

• A) Unemployment rate
• B) Consumer spending
• C) Stock market performance
• D) Housing starts

Q19: 19. What does the term "crowding out" refer to in macroeconomics?

• A) Increase in government spending
• B) Decrease in private investment due to government borrowing
• C) Expansion of international trade
• D) Rise in consumer confidence

Q20: 20. Which of the following is a consequence of deflation?

• A) Increase in purchasing power
• B) Decrease in real wages
• C) Rise in consumer spending
• D) Expansion of credit availability

Q21: 21. What is the purpose of the Consumer Price Index (CPI)?

• A) To measure changes in consumer preferences
• B) To track inflation rates
• C) To forecast stock market performance
• D) To analyze government spending

Q22: 22. Which of the following is a measure of trade balance?

• A) Budget deficit
• B) Current account balance
• C) National debt
• D) Foreign exchange rate

Q23: 23. What is the role of exchange rates in international trade?

• A) To regulate government spending
• B) To control inflation rates
• C) To determine the value of currencies
• D) To influence consumer savings

Q24: 24. Which of the following best describes the concept of "opportunity cost"?

• A) Total cost of production
• B) Cost of goods and services
• C) Value of the next best alternative foregone
• D) Price paid by consumers

Q25: 25. What is the impact of technological advancements on economic growth?

• A) Decrease in productivity
• B) Increase in unemployment
• C) Expansion of industries
• D) Slowdown in innovation