#1
What does GDP stand for?
Gross Domestic Product
ExplanationTotal value of all goods and services produced within a country's borders.
#2
Which of the following is not a factor of production?
Money
ExplanationNot directly used to produce goods and services.
#3
What is the term for the percentage of the labor force that is unemployed?
Unemployment rate
ExplanationProportion of unemployed individuals in the labor force.
#4
What is the term for a situation where the government spends more money than it receives in revenue?
Budget deficit
ExplanationShortfall when government expenditures exceed revenue.
#5
What is the term for a sustained increase in the general price level of goods and services in an economy over a period of time?
Inflation
ExplanationReduction in purchasing power due to rising prices.
#6
What is the opportunity cost of a decision?
The value of the next best alternative foregone
ExplanationValue of the best alternative not chosen.
#7
What is the term for a situation where the market price is higher than the equilibrium price?
Shortage
ExplanationQuantity demanded exceeds quantity supplied.
#8
Which economic concept suggests that as the price of a good increases, the quantity demanded decreases, and vice versa?
Law of Demand
ExplanationInverse relationship between price and quantity demanded.
#9
What is the formula to calculate price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
ExplanationMeasures responsiveness of quantity demanded to price changes.
#10
What is the primary goal of monetary policy?
To control inflation and stabilize prices
ExplanationInfluence the economy through interest rates and money supply.
#11
Which market structure is characterized by a large number of firms selling differentiated products?
Monopolistic competition
ExplanationMany sellers with slightly differentiated products.
#12
What is fiscal policy?
The use of government spending and taxation to influence the economy
ExplanationGovernment's use of revenue and spending to stabilize the economy.
#13
What does the term 'Ceteris Paribus' mean in economics?
All things being equal
ExplanationAssuming all other factors remain constant.
#14
What does the term 'invisible hand' refer to in economics?
The automatic self-regulation of the market
ExplanationMarket forces guide resources to their most efficient uses.