#1
Which of the following is a basic economic concept?
Quantum physics
Supply and demand
Cell biology
Newton's laws of motion
#2
In economics, what does the term 'elasticity' measure?
The responsiveness of quantity demanded to a change in price
The total quantity of a good demanded at all possible prices
The proportion of income spent on a particular good
The average level of prices in the economy
#3
In economic terms, what does the acronym NAFTA stand for?
North American Free Trade Agreement
National Association of Financial and Trade Analysts
New Age Financial Technologies Alliance
Nations Advocating Fair Trade Agreements
#4
Which economic school of thought advocates for minimal government intervention and emphasizes free markets?
Keynesian economics
Monetarism
Classical economics
Austrian economics
#5
According to the law of demand, what is the relationship between price and quantity demanded?
Directly proportional
Inversely proportional
Unrelated
Constant
#6
What is the formula for calculating GDP (Gross Domestic Product)?
GDP = Consumption + Investment + Government Spending + (Exports - Imports)
GDP = Consumption - Investment - Government Spending - (Exports + Imports)
GDP = Consumption * Investment * Government Spending * (Exports / Imports)
GDP = Consumption / Investment / Government Spending / (Exports * Imports)
#7
What is the concept of 'opportunity cost' in economics?
The cost of buying opportunities
The cost of forgoing the next best alternative
The cost of free choices
The cost of unlimited resources
#8
Which of the following is a macroeconomic indicator used to measure the overall health of an economy?
Consumer Price Index (CPI)
Price-earnings ratio (P/E ratio)
Gini coefficient
Gross Domestic Product (GDP)
#9
What is the Tragedy of the Commons in economics?
A situation where private property rights are not enforced
The overuse and depletion of shared resources due to self-interest
The inefficiency of market economies
A type of market failure caused by externalities
#10
What is the role of the Federal Reserve in the United States economy?
Setting fiscal policy
Regulating the stock market
Controlling monetary policy
Overseeing international trade agreements
#11
Which economic system relies on private ownership and market forces to determine production and consumption?
Command economy
Mixed economy
Capitalist economy
Socialist economy
#12
What is the Phillips Curve in economics?
A curve showing the relationship between inflation and unemployment
A curve illustrating the production possibilities of an economy
A curve representing the impact of taxation on consumer behavior
A curve depicting the relationship between interest rates and investment
#13
What is the role of the Federal Reserve in the United States?
Setting fiscal policy
Issuing currency
Regulating banks and implementing monetary policy
Approving government budgets
#14
What is the difference between a progressive tax and a regressive tax?
Progressive tax takes a higher percentage from high-income earners, while regressive tax takes a higher percentage from low-income earners
Progressive tax takes a higher percentage from low-income earners, while regressive tax takes a higher percentage from high-income earners
Both progressive and regressive taxes take the same percentage from all income levels
Progressive tax only applies to corporations, while regressive tax applies to individuals
#15
What is the Tragedy of the Commons in economic theory?
A market failure due to inadequate government regulation
The overuse and depletion of shared resources
A situation where supply exceeds demand
A crisis caused by excessive government intervention