#1
Which of the following is a basic economic concept?
Supply and Demand
ExplanationBasic principle determining market equilibrium.
#2
What does the term 'ceteris paribus' mean in economics?
All other things being equal
ExplanationAnalytical tool holding other variables constant.
#3
What does GDP stand for in economics?
Gross Domestic Product
ExplanationTotal monetary value of all goods and services produced within a country's borders.
#4
In economics, what is the opportunity cost?
The cost of missed opportunities
ExplanationThe value of the next best alternative forgone.
#5
What is the formula for calculating the unemployment rate?
Number of unemployed / Labor force
ExplanationPercentage of unemployed individuals in the labor force.
#6
What is the law of diminishing marginal utility?
As quantity increases, satisfaction increases at a decreasing rate
ExplanationThe principle that each additional unit of a good provides less utility than the previous one.
#7
What is inflation in economics?
An increase in the general price level of goods and services
ExplanationRise in the overall price level over a period of time.
#8
What is the Law of Demand in economics?
As prices decrease, quantity demanded increases
ExplanationInverse relationship between price and quantity demanded.