#1
Which of the following is a basic economic problem?
Determining the price of luxury cars
Scarcity
Deciding on the CEO's salary
Choosing the color for a new phone model
#2
What does GDP stand for?
Gross Domestic Product
General Domestic Policy
Government Debt Percentage
Gross Development Percentage
#3
What is inflation?
A decrease in the value of money
An increase in the value of money
A decrease in the price level of goods and services
An increase in the price level of goods and services
#4
What is the primary goal of a for-profit business?
To increase its market share
To maximize shareholder value
To serve the community
To ensure employee satisfaction
#5
Which concept is central to understanding the working of the stock market?
Scarcity
Supply and demand
Opportunity cost
Marginal utility
#6
What type of business structure is owned and operated by one individual?
Corporation
Partnership
Sole proprietorship
Limited liability company (LLC)
#7
What is the primary function of the World Bank?
To regulate international trade
To provide financial and technical assistance to developing countries
To manage global exchange rates
To oversee international financial stability
#8
Which market structure is characterized by a single seller and no close substitutes for the product?
Monopolistic competition
Oligopoly
Perfect competition
Monopoly
#9
In economics, the opportunity cost is defined as:
The cost of making a product
The cost of not choosing the next best alternative
The price paid for goods
The total revenue minus total costs
#10
Which of the following best defines a 'bear market'?
A market in which stock prices are rising
A market in which stock prices are falling
A market dominated by aggressive traders
A market with stable stock prices
#11
What does the term 'liquidity' refer to in financial markets?
The ease with which an asset can be converted into cash
The amount of liquid assets a company holds
The level of interest rates in the economy
The volume of shares traded in the stock market
#12
Which of the following is a characteristic of oligopolistic markets?
A large number of sellers
Product differentiation
Significant barriers to entry
Perfect information
#13
What does the 'invisible hand' refer to in Adam Smith's economic theory?
Government regulation of markets
The role of central banks in controlling inflation
The self-regulating nature of the marketplace
The manipulation of markets by monopolies
#14
The Law of Demand states that:
Price and quantity demanded are directly proportional
There is an inverse relationship between the price of a good and the quantity demanded
Demand for a good decreases as income increases
The demand for a good is unaffected by its price
#15
Which of the following best describes a 'mixed economy'?
An economy where the production of goods is based solely on consumer demand
An economy that operates without any government intervention
An economy that features both private and public ownership of businesses and services
An economy exclusively controlled by the government
#16
In the context of international trade, what does 'comparative advantage' mean?
A country's ability to produce all goods more efficiently than other countries
A country's ability to produce a particular good at a lower opportunity cost than other countries
A country's ability to import more than it exports
A country's ability to impose tariffs and trade barriers more effectively than other countries
#17
What principle does the Pareto Efficiency concept illustrate?
Resources are distributed in such a way that it is impossible to make any one individual better off without making at least one individual worse off
The total utility in an economy can always be increased by redistributing resources
Economic transactions always benefit both the buyer and the seller
In a competitive market, prices will always tend towards equilibrium
#18
What is the main purpose of anti-trust laws?
To protect consumers from fraudulent business practices
To prevent and reduce the practice of monopolies and ensure competition
To regulate international trade and prevent tariffs
To ensure equal distribution of wealth among citizens
#19
What principle is demonstrated by the Laffer Curve in economics?
There is an optimal tax rate above which government revenue begins to decrease
Government spending always stimulates economic growth
Interest rates have no effect on savings
High taxes always lead to increased government revenue