#1
What is opportunity cost?
The value of the next best alternative foregone
ExplanationCost of forgoing the next best alternative.
#2
What does GDP stand for?
Gross Domestic Product
ExplanationTotal value of goods and services produced in a country.
#3
What is the concept of 'opportunity cost'?
The value of the next best alternative foregone
ExplanationCost of choosing one option over another.
#4
What is the difference between a monopoly and an oligopoly?
In a monopoly, there is only one seller, while in an oligopoly, there are few sellers.
ExplanationMarket structure differences in number of sellers.
#5
In microeconomics, what does 'demand' refer to?
The quantity of goods and services consumers are willing and able to purchase at a given price
ExplanationConsumer willingness and ability to buy at a specific price.
#6
Which of the following is not a characteristic of a perfectly competitive market?
Barriers to entry and exit
ExplanationPerfect competition lacks barriers to market entry or exit.
#7
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded divided by percentage change in price
ExplanationMeasure of consumer responsiveness to price changes.
#8
What is the difference between a progressive tax system and a regressive tax system?
In a progressive tax system, higher income individuals pay a higher percentage of their income in taxes, while in a regressive tax system, lower income individuals pay a higher percentage.
ExplanationTax systems based on income proportionality.
#9
What does the term 'elasticity of supply' measure?
The responsiveness of quantity supplied to a change in price
ExplanationMeasure of producer responsiveness to price changes.
#10
What is the formula for calculating total revenue?
Price multiplied by quantity sold
ExplanationTotal income from selling a given quantity of a product.
#11
What is the concept of 'marginal utility' in economics?
The additional satisfaction gained from consuming one more unit of a good or service
ExplanationAdded satisfaction from consuming an extra unit of a product.
#12
What is the main function of central banks in a country's economy?
To control the money supply and interest rates
ExplanationControl of monetary policy and interest rates.
#13
What is the significance of the Phillips curve in macroeconomics?
It shows the relationship between inflation and unemployment.
ExplanationGraphical representation of inflation and unemployment trade-off.
#14
What is the main function of the World Bank?
To provide financial assistance and policy advice to developing countries
ExplanationInternational financial aid and advisory organization.
#15
What is 'perfect competition' in economics?
A market structure with many buyers and sellers, homogeneous products, and no barriers to entry or exit
ExplanationIdeal market structure with specific characteristics.
#16
What is the difference between 'explicit costs' and 'implicit costs'?
Explicit costs are monetary payments for inputs, while implicit costs are opportunity costs of using self-owned resources.
ExplanationMonetary vs. opportunity costs in economic analysis.