#1
What does the law of demand state?
As price increases, quantity demanded decreases
As price decreases, quantity demanded increases
As price increases, quantity demanded increases
As price decreases, quantity demanded decreases
#2
What is the opportunity cost of a decision?
The explicit cost incurred in making that decision
The monetary value of benefits foregone as a result of choosing one alternative over another
The time spent in making the decision
The total cost of all available alternatives
#3
What is the law of supply?
As price increases, quantity supplied decreases
As price decreases, quantity supplied decreases
As price increases, quantity supplied increases
As price decreases, quantity supplied increases
#4
What is the role of the Federal Reserve in the U.S. economy?
Regulating international trade
Issuing currency
Conducting monetary policy
Setting fiscal policy
#5
What is the function of the World Trade Organization (WTO)?
Promote global currency stability
Enforce international labor standards
Facilitate international trade negotiations and resolve trade disputes
Coordinate global monetary policy
#6
What is the primary goal of microeconomics?
To analyze the behavior of individual consumers and producers
To study the economy as a whole
To examine the impact of government policies on the economy
To analyze the fluctuations in aggregate economic variables
#7
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and sellers
Product differentiation
Price discrimination
Barriers to entry
#8
What is the formula for calculating GDP?
Consumption + Investment + Government Spending + Exports - Imports
Consumption + Investment + Government Spending + Net Exports
Consumption + Investment - Government Spending + Exports - Imports
Consumption - Investment + Government Spending + Exports - Imports
#9
Which of the following is not a function of money?
Medium of exchange
Store of value
Standard of living
Unit of account
#10
What is the main characteristic of a monopoly market structure?
Many buyers and sellers
Homogeneous products
A single seller with significant control over price
Perfect information
#11
Which of the following is not a characteristic of a perfectly competitive market?
Homogeneous products
Many buyers and sellers
Significant barriers to entry
Price taker behavior
#12
What is the primary function of central banks in the economy?
Regulating fiscal policy
Conducting monetary policy
Managing international trade
Providing social welfare programs
#13
Which of the following is a characteristic of monopolistic competition?
Many buyers and sellers
Identical products
Significant barriers to entry
Product differentiation
#14
What does the term 'elasticity of demand' measure?
The responsiveness of quantity demanded to a change in price
The total quantity demanded in the market
The slope of the demand curve
The total revenue earned by producers
#15
What is the difference between nominal GDP and real GDP?
Nominal GDP is adjusted for inflation, while real GDP is not.
Real GDP is adjusted for inflation, while nominal GDP is not.
Nominal GDP includes only the value of final goods and services, while real GDP includes intermediate goods.
Real GDP includes only the value of final goods and services, while nominal GDP includes intermediate goods.
#16
What is the Phillips curve relationship?
There is a positive relationship between inflation and unemployment
There is a negative relationship between inflation and unemployment
There is a positive relationship between inflation and GDP growth
There is a negative relationship between inflation and GDP growth
#17
What is the concept of comparative advantage in international trade?
A country should focus on producing goods for which it has the lowest opportunity cost
A country should produce all goods domestically to avoid dependence on imports
A country should only trade goods for which it has an absolute advantage
A country should import all goods for which it has a comparative disadvantage
#18
What is the quantity theory of money?
The theory that the money supply directly affects the price level in the economy
The theory that the quantity of goods and services produced directly affects the money supply
The theory that the quantity of money demanded by individuals directly affects the money supply
The theory that the quantity of money demanded by individuals is unrelated to the price level