21. Phillips Curve Relationship
A. Inverse Relationship between Unemployment and Inflation
B. Short-Run Tradeoff between Inflation and Unemployment
C. Positive Relationship between Interest Rates and Inflation
D. Long-Run Equilibrium
22. Role of the World Trade Organization (WTO)
A. Regional Economic Cooperation
B. Facilitating International Trade, Resolving Trade Disputes
C. Currency Stabilization
D. Monetary Policy Formulation
23. External Debt and Developing Economies
A. Decreases Economic Dependency
B. Can Be a Challenge, Leading to Debt Servicing Issues
C. Boosts Economic Growth Automatically
D. Indicates Economic Prosperity
24. Elasticity of Supply
A. Measures Consumer Responsiveness to Price Changes
B. Measures Producer Responsiveness to Price Changes
C. Determines Cross-Border Trade Dynamics
D. Influences Government Spending
25. Game Theory in Economics
A. Application in Isolation
B. Study of Strategic Interactions among Rational Decision-Makers
C. Limited to Microeconomics
D. Predictive Analysis of Stock Markets
26. Factors Influencing Exchange Rates
A. Inflation Rates
B. Fiscal Policy
C. Interest Rates, Political Stability, Economic Performance
D. Historical Exchange Rate
27. Environmental Economics
A. Excludes Consideration of Environmental Issues
B. Studies the Impact of Economic Activity on the Environment
C. Focuses Solely on Economic Growth
D. Neglects Resource Scarcity
28. The Laffer Curve
A. Illustrates Perfect Competition
B. Depicts the Relationship between Tax Rates and Tax Revenue
C. Represents Monopoly Behavior
D. Reflects Elasticity of Demand
29. Hyperinflation Causes
A. Stable Money Supply
B. Low Demand for Goods and Services
C. Excessive Money Printing, Loss of Confidence in Currency
D. Strict Government Control
30. Economic Externalities
A. Limited to Positive Impacts
B. Unintended Side Effects of Economic Activities on Third Parties
C. Controlled by Market Forces
D. Only Relevant in a Closed Economy
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