#1
Which of the following best defines the law of supply in economics?
As prices decrease, quantity demanded decreases.
As prices increase, quantity supplied decreases.
As prices decrease, quantity supplied increases.
As prices increase, quantity demanded increases.
#2
What does GDP stand for in economics?
Gross Domestic Production
General Demand and Pricing
Gross Domestic Product
Government Development Policy
#3
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and many sellers
Few buyers and many sellers
Few buyers and few sellers
Many buyers and few sellers
#4
What is the economic term for a situation where a good or service is unavailable due to excess demand?
Surplus
Shortage
Equilibrium
Scarcity
#5
What is the economic term for the total value of all goods and services produced within a country's borders in a specific time period?
Net Domestic Product (NDP)
Gross National Product (GNP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#6
What is the term for the increase in the general level of prices of goods and services over time?
Deflation
Recession
Inflation
Stagflation
#7
In economics, what does the term 'market equilibrium' refer to?
The point where quantity supplied exceeds quantity demanded
The point where quantity demanded exceeds quantity supplied
The point where quantity demanded equals quantity supplied
The point where there is no trade in the market
#8
What does the term 'opportunity cost' refer to in economics?
The cost of producing one more unit of a good or service
The cost of forgoing the next best alternative
The total cost of production
The cost of labor
#9
In the context of economics, what does the term 'inflation' mean?
A decrease in the overall level of prices
An increase in the overall level of prices
Stable prices over time
A decrease in the unemployment rate
#10
What is the primary function of a central bank in an economy?
To regulate fiscal policy
To regulate monetary policy
To regulate trade policies
To regulate environmental policies
#11
Which of the following is not a factor of production?
Land
Labor
Technology
Capital
#12
What is the main difference between a monopoly and an oligopoly?
The number of firms in the market
The level of government regulation
The degree of product differentiation
The level of competition
#13
What does the term 'marginal utility' represent in economics?
The total satisfaction derived from consuming a good or service
The additional satisfaction gained from consuming one more unit of a good or service
The total utility derived from consuming a good or service
The average satisfaction derived from consuming a good or service
#14
In economics, what does the term 'externality' refer to?
A situation where a market fails to allocate resources efficiently
The cost or benefit that affects a party who did not choose to incur that cost or benefit
A situation where a firm has control over the market price
A market structure with only one producer
#15
What is the concept of 'elasticity' in economics?
The measure of responsiveness of quantity demanded to a change in price
The measure of the total output produced by a firm
The measure of the average cost per unit of output
The measure of government intervention in markets
#16
What is the 'invisible hand' in economics, as coined by Adam Smith?
The government's influence on the economy
The self-interest and competition guiding resources to their most efficient uses
The market's tendency to regulate itself without external intervention
The role of consumers in determining prices
#17
What is the concept of 'comparative advantage' in economics?
The ability of a country to produce a good at a lower opportunity cost than another country
The ability of a country to produce all goods more efficiently than another country
The ability of a country to produce a good using fewer resources than another country
The ability of a country to produce a good at a higher opportunity cost than another country
#18
What is the economic term for a situation where the price of one good increases, leading to a decrease in the demand for another related good?
Substitution effect
Income effect
Cross-price elasticity
Price elasticity of demand