#1
Which of the following is considered a primary sector activity?
Farming crops
ExplanationPrimary sector involves extracting raw materials, such as agriculture.
#2
What does the term 'Inflation' refer to in economics?
An increase in the general price level of goods and services
ExplanationInflation erodes purchasing power by increasing prices over time.
#3
What is the economic term for the total market value of all final goods and services produced within a country's borders in a given period of time?
Gross Domestic Product (GDP)
ExplanationGDP measures the economic activity within a country's borders.
#4
What is the economic term for the total value of all goods and services produced by the residents of a country, even if they're located abroad, in a given period?
Gross National Product (GNP)
ExplanationGNP measures the total economic output by a country's citizens, including overseas.
#5
What does the term 'opportunity cost' refer to in economics?
The value of the next best alternative forgone when a decision is made
ExplanationOpportunity cost measures the value of the foregone alternative when a decision is made.
#6
Gross Domestic Product (GDP) measures:
The total value of all goods and services produced within a country in a specific period
ExplanationGDP measures a country's economic output within its borders over a period.
#7
Which of the following is NOT a characteristic of a developed economy?
Low life expectancy
ExplanationDeveloped economies typically have high life expectancies due to better healthcare.
#8
Which of the following is NOT a characteristic of a command economy?
Private ownership of means of production
ExplanationIn a command economy, means of production are owned or controlled by the state.
#9
What is the economic term for the total value of goods and services produced by a country within its borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationGDP measures the economic performance of a country within its borders.
#10
Which of the following is NOT a factor affecting economic growth?
Inflation
ExplanationInflation can spur growth or hinder it, but it's not a direct factor.
#11
What does the term 'Comparative Advantage' refer to in international trade?
The ability of a country to produce a good at a lower opportunity cost than another country
ExplanationIt's the principle where countries specialize in producing goods with lower opportunity costs.
#12
What is the 'Lorenz Curve' used to represent?
Income inequality
ExplanationIt illustrates the distribution of income or wealth among a nation's residents.
#13
Which of the following is NOT a component of the Human Development Index (HDI)?
Income inequality
ExplanationHDI includes indicators like life expectancy, education, and per capita income.
#14
Which of the following is NOT a characteristic of perfect competition?
Significant barriers to entry
ExplanationPerfect competition implies easy entry and exit for firms.
#15
What does the 'Phillips Curve' illustrate?
The relationship between inflation and unemployment
ExplanationIt shows the inverse relationship between unemployment and inflation.
#16
What is the economic term for the situation where the quantity of a good or service supplied exceeds the quantity demanded, leading to a lower price?
Surplus
ExplanationSurplus occurs when supply exceeds demand, pushing prices down.
#17
Which of the following is NOT a characteristic of oligopoly?
Price taker
ExplanationOligopolies have a few dominant firms that can influence prices.