#1
Who are considered the primary economic agents in an economy?
Governments and banks
Households and firms
Foreign countries
Non-profit organizations
#2
What principle explains the trade-offs between two options given limited resources?
Comparative advantage
Opportunity cost
Marginal utility
Supply and demand
#3
What does GDP stand for?
Gross Domestic Product
General Demand Prediction
Government Debt Percentage
Gross Domestic Policy
#4
What term describes the loss of potential gain from other alternatives when one alternative is chosen?
Marginal cost
Economic inefficiency
Opportunity cost
Comparative advantage
#5
What does the term 'fiscal policy' refer to?
The regulation of money supply by central banks
Government spending and tax policies to influence the economy
Corporate financial strategies
International trade agreements
#6
Which of the following best describes a 'public good'?
A product that is available only to paying customers
A service provided by private companies to generate profit
A good that is non-excludable and non-rivalrous
A high-quality product
#7
Which market structure is characterized by a single seller and many buyers?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#8
In economics, what does the term 'ceteris paribus' mean?
Equal partnership
With all due respect
Other things being equal
After the fact
#9
What concept explains the phenomenon where increasing one factor of production, while holding others constant, will at some point yield lower per-unit returns?
Economies of scale
Law of demand
Law of supply
Law of diminishing returns
#10
Which of the following best defines 'market equilibrium'?
When the government intervenes to set prices
When supply is greater than demand
When demand is greater than supply
When the quantity demanded equals the quantity supplied
#11
In which market structure do firms sell products that are differentiated, but not perfect substitutes?
Perfect competition
Monopolistic competition
Monopoly
Oligopoly
#12
Which economic theory focuses on the total spending in the economy and its effects on output and inflation?
Classical economics
Marxist economics
Keynesian economics
Supply-side economics
#13
What does the Phillips Curve illustrate?
The relationship between inflation and unemployment
The trade-off between supply and demand
The impact of interest rates on investment
The effect of taxation on economic growth
#14
Which of the following best describes the concept of 'elasticity' in economics?
The measure of a market's ability to return to equilibrium after a disturbance
The responsiveness of quantity demanded or supplied to a change in price
The change in consumption resulting from a change in real income
The total output of a market divided by the number of firms
#15
What is the term for the cost incurred by changing from one economic activity to another, often used in the context of switching suppliers or products?
Transition cost
Variable cost
Switching cost
Opportunity cost
#16
Which of the following is a fundamental concept in game theory?
Price elasticity
Nash equilibrium
Marginal utility
Absolute advantage
#17
The 'Laffer Curve' is used to illustrate:
The relationship between tax rates and government revenue
The impact of interest rates on savings
The trade-off between inflation and unemployment
The effect of exchange rates on international trade