IBM_tutorial_8

What does 'economic activity' primarily refer to?

• Leisure activities within an economy

• Production of goods and services

• Government policies on trade

• Household budgeting

Which of the following is a key measure of economic activity?

• Unemployment rate

• Consumer confidence

• Gross Domestic Product (GDP)

• Trade balance

GDP is the total value of:

• All taxes collected in a country

• All imports and exports in a country

• All goods and services produced in a country

• Government investments in a country

What does a rise in GDP typically indicate?

• Decrease in production

• Economic growth

• Increased unemployment

• Decline in consumer spending

Which type of GDP accounts for inflation?

• Nominal GDP

• Real GDP

• Gross National Product (GNP)

• Adjusted GDP

In the circular flow of income, what is considered a 'leakage'?

• Government spending

• Consumer savings

• Business investments

• Export earnings

What happens when injections exceed leakages in an economy?

• GDP falls

• Inflation decreases

• GDP rises

• Unemployment rises

Which of the following is an example of an injection into the economy?

• Household savings

• Taxation

• Government expenditure

• Imports

What can result from leakages exceeding injections in the economy?

• Economic growth

• GDP reduction

• Higher employment

• Increased consumer spending

What are the stages of the business cycle in order?

• Recession, boom, slump, recovery

• Boom, recession, slump, recovery

• Recovery, boom, recession, slump

• Slump, boom, recovery, recession