#1
What is the basic economic problem that arises due to scarcity?
Unlimited wants
ExplanationEconomic problem stems from the imbalance between limited resources and insatiable human desires.
#2
What is the opportunity cost of a decision?
The next best alternative forgone
ExplanationOpportunity cost is the value of the best foregone alternative when a decision is made.
#3
In macroeconomics, what does GDP stand for?
Gross Domestic Product
ExplanationGDP represents the total value of goods and services produced within a country's borders.
#4
Which of the following is a characteristic of a perfectly competitive market?
Price taker behavior
ExplanationPerfectly competitive markets exhibit firms accepting market prices as given, without the ability to influence.
#5
What is the economic concept that refers to the additional satisfaction or utility gained from consuming one more unit of a good or service?
Diminishing marginal utility
ExplanationDiminishing marginal utility indicates declining additional satisfaction with each successive unit consumed.
#6
Which of the following is a characteristic of a public good?
Non-excludability
ExplanationPublic goods are characterized by non-excludability, meaning individuals cannot be excluded from their benefits.
#7
In economics, what does the term 'externality' refer to?
A side effect of an economic activity affecting third parties
ExplanationExternality pertains to unintended effects on external parties from economic activities.
#8
What is the Phillips Curve used to illustrate in economics?
The relationship between inflation and unemployment
ExplanationPhillips Curve showcases the trade-off between inflation and unemployment levels.
#9
Which economic concept is illustrated by the production possibilities frontier (PPF) curve?
Opportunity cost
ExplanationPPF curve visually depicts opportunity cost by showing the trade-offs between two goods.