#1
Which of the following is a measure of a country's economic performance over a period of time?
Gross Domestic Product (GDP)
ExplanationIndicator of economic activity
#2
What is the formula for calculating the elasticity of demand?
Percentage change in quantity demanded divided by percentage change in price
ExplanationResponsiveness of demand to price changes
#3
What is the concept of 'perfect competition' in microeconomics?
A market structure with many buyers and sellers, identical products, and easy entry and exit
ExplanationIdeal market structure
#4
What is the Phillips Curve in economics often used to illustrate?
The relationship between inflation and unemployment
ExplanationTrade-off between inflation and unemployment
#5
What is the concept of 'marginal cost' in microeconomics?
The additional cost of producing one more unit of a good or service
ExplanationCost of producing one more unit
#6
What does the term 'opportunity cost' refer to in economic analysis?
The value of the best alternative forgone
ExplanationCost of next best alternative
#7
In microeconomics, what is the law of diminishing marginal utility?
As the quantity of a good consumed increases, its total utility decreases
ExplanationDecreasing satisfaction with each unit consumed
#8
In economic terms, what does 'ceteris paribus' mean?
All else being equal
ExplanationIsolating the effect of a single variable
#9
What is the primary goal of monetary policy?
Controlling inflation and stabilizing prices
ExplanationMaintaining price stability
#10
Which economic indicator is often considered a leading indicator of economic health?
Stock market performance
ExplanationIndicator of future economic activity
#11
What is the primary objective of fiscal policy in economic management?
Promoting economic growth and employment
ExplanationBoosting economic activity
#12
Which economic theory argues that government intervention in the economy is necessary to address market failures?
Keynesian economics
ExplanationAdvocates for government intervention
#13
In the context of game theory, what does the 'Nash equilibrium' represent?
A stable outcome where no player has an incentive to deviate
ExplanationStable strategic outcome
#14
What is the Laffer curve used to illustrate in economic analysis?
The impact of taxes on government revenue
ExplanationRelationship between tax rates and revenue
#15
What is the Tragedy of the Commons in economic terms?
A situation where shared resources are overused and depleted
ExplanationOverexploitation of common resources