#1
1. What is the fundamental economic problem?
Scarcity
Inflation
Surplus
Monopoly
#2
10. In monetary policy, what does 'open market operations' involve?
The buying and selling of government securities by the central bank
Setting interest rates for commercial banks
Controlling the money supply through direct government spending
Implementing price controls in financial markets
#3
15. What is the role of the Federal Reserve in the United States?
Conducting fiscal policy
Regulating international trade
Controlling the money supply and implementing monetary policy
Overseeing social welfare programs
#4
19. According to the law of diminishing marginal utility, what happens as a person consumes more units of a good or service?
Total utility increases at a decreasing rate
Total utility increases at an increasing rate
Total utility remains constant
Total utility decreases
#5
20. What is the role of the World Trade Organization (WTO) in the global economy?
To regulate international financial markets
To promote fair competition and reduce trade barriers among member countries
To implement fiscal policies for developing nations
To control global exchange rates
#6
25. What is the role of the International Monetary Fund (IMF) in the global financial system?
To regulate international trade
To provide financial assistance to countries facing balance of payments problems
To control global interest rates
To enforce environmental regulations on member countries
#7
2. Which economic system relies on private ownership and individual incentives?
Socialism
Capitalism
Communism
Fascism
#8
3. What is the formula for calculating GDP (Gross Domestic Product)?
GDP = Consumption + Investment - Government Spending + Net Exports
GDP = Consumption + Investment + Government Spending + Net Exports
GDP = Consumption - Investment + Government Spending - Net Exports
GDP = Consumption - Investment - Government Spending - Net Exports
#9
6. In economics, what does the term 'elasticity' refer to?
The measure of responsiveness of quantity demanded to a change in price
The measure of government intervention in the market
The measure of production efficiency
The measure of income distribution
#10
7. What is the Tragedy of the Commons in economic theory?
The overuse and depletion of shared resources due to individual self-interest
The failure of market economies to allocate resources efficiently
The unequal distribution of wealth among the population
The economic downturn caused by external shocks
#11
12. What is the concept of the 'invisible hand' in economic theory?
The role of government in regulating markets
The self-regulating nature of free markets guided by individual self-interest
The impact of externalities on market outcomes
The influence of cultural factors on economic behavior
#12
13. Which type of inflation occurs when there is an increase in the overall price level due to an increase in production costs?
Demand-pull inflation
Cost-push inflation
Hyperinflation
Stagflation
#13
17. Which economic theory argues that government intervention is necessary to address market failures and ensure social welfare?
Keynesian economics
Monetarism
Austrian economics
Supply-side economics
#14
4. What is the concept of opportunity cost?
The cost of production
The cost of goods and services
The value of the next best alternative forgone
The cost of labor
#15
5. According to the Phillips Curve, what is the relationship between inflation and unemployment?
Inverse relationship
Direct relationship
No relationship
Cyclical relationship
#16
8. Which economic indicator is considered a lagging indicator?
Unemployment rate
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Stock prices
#17
9. What is the Coase Theorem in economics?
The theory of comparative advantage
The proposition that private parties can efficiently resolve disputes without government intervention
The concept of diminishing marginal returns
The theory of perfect competition
#18
11. What is the Laffer Curve used to illustrate in economics?
The relationship between inflation and unemployment
The impact of government spending on economic growth
The trade-off between equity and efficiency in taxation
The relationship between tax rates and government revenue
#19
14. What is the concept of a 'veil of ignorance' in the context of distributive justice?
The idea that everyone should have an equal share of resources
The principle of maximizing overall happiness in society
The concept that justice is blind and impartial
The notion that individuals should decide on justice without knowing their own position in society
#20
16. What does the term 'moral hazard' refer to in the context of economics and finance?
The risk of unethical behavior in business
The potential for adverse effects on the environment
The tendency for individuals to take on more risk when they are protected from the consequences of their actions
The impact of income inequality on social cohesion