#1
Which of the following is an example of a public good?
Bottled water
Street lighting
Movie tickets
Clothing
#2
What does GDP stand for?
Gross Domestic Product
Government Department Personnel
General Development Program
Global Distribution Protocol
#3
What is 'supply and demand' in economics?
A theory stating that prices of goods are determined by the supply of those goods and the demand for them
A government policy regulating the production and consumption of goods
A market structure with many firms selling similar products
A market structure with few large firms dominating the market
#4
What is the 'invisible hand' concept in economics?
The idea that government intervention is necessary for market efficiency
The idea that market prices adjust naturally to equate supply and demand
The idea that producers should focus on maximizing profits
The idea that consumers should make rational decisions
#5
What is 'perfect competition' in economics?
A market structure with a single seller dominating the market
A market structure with few large firms dominating the market
A market structure with many firms selling similar products and no barriers to entry or exit
A market structure with differentiated products and significant barriers to entry
#6
What does the term 'marginal cost' refer to?
The total cost of producing one more unit of a good or service
The additional cost of producing one more unit of a good or service
The average cost of producing all units of a good or service
The cost of producing the first unit of a good or service
#7
What is 'elasticity of supply'?
The responsiveness of quantity supplied to a change in price
The responsiveness of quantity demanded to a change in price
The change in quantity supplied due to a change in income
The change in quantity demanded due to a change in the price of related goods
#8
Which of the following best defines 'opportunity cost'?
The cost of producing one more unit of a good or service
The cost of purchasing a good or service
The cost of forgoing the next best alternative when making a decision
The cost of labor
#9
What does 'inflation' refer to in economics?
A decrease in the general price level of goods and services
A decrease in the money supply
An increase in the general price level of goods and services
An increase in the value of a currency
#10
What is the law of diminishing marginal returns?
As more of a variable input is added to a fixed input, the additional output produced eventually decreases
As more of a variable input is added to a fixed input, the additional output produced remains constant
As more of a variable input is added to a fixed input, the additional output produced increases at an increasing rate
As more of a variable input is added to a fixed input, the additional output produced increases at a decreasing rate
#11
What is a 'monopoly' in economics?
A market structure with many firms selling similar products
A market structure with a single seller dominating the market
A market structure with few large firms dominating the market
A market structure with perfect competition
#12
What is fiscal policy?
Policy measures taken by the central bank to regulate the money supply and interest rates
Policy measures taken by the government to regulate taxation and government spending
Policy measures taken by international organizations to stabilize global financial markets
Policy measures taken by firms to maximize profits
#13
What does 'marginal utility' refer to in economics?
The total satisfaction derived from consuming a good or service
The additional satisfaction derived from consuming one more unit of a good or service
The satisfaction derived from consuming a good or service divided by the price of that good or service
The satisfaction derived from consuming a good or service multiplied by the price of that good or service
#14
What is the 'Laffer curve' in economics?
A curve showing the relationship between tax rates and government revenue
A curve showing the relationship between inflation and unemployment
A curve showing the relationship between interest rates and investment
A curve showing the relationship between exchange rates and trade balance
#15
What does the term 'elasticity of demand' measure?
The responsiveness of quantity demanded to a change in price
The change in quantity demanded due to a change in income
The percentage change in quantity demanded relative to the percentage change in quantity supplied
The change in quantity demanded due to a change in the price of related goods
#16
What is 'comparative advantage' in international trade?
The ability of a country to produce a good using fewer resources than another country
The ability of a country to produce all goods more efficiently than another country
The ability of a country to produce a good at a lower opportunity cost than another country
The ability of a country to produce a good at a higher opportunity cost than another country
#17
What is the 'Phillips curve' in macroeconomics?
A curve showing the relationship between the inflation rate and the unemployment rate
A curve showing the relationship between the GDP growth rate and the inflation rate
A curve showing the relationship between the interest rate and the investment rate
A curve showing the relationship between the exchange rate and the trade balance
#18
What is the 'tragedy of the commons'?
A situation where individuals overuse or deplete a shared resource
A situation where individuals underuse a shared resource
A situation where government intervention leads to efficient resource allocation
A situation where private ownership of resources leads to optimal outcomes
#19
What is 'utility' in economics?
The satisfaction or pleasure derived from consuming a good or service
The cost incurred in producing a good or service
The total revenue generated from selling a good or service
The total profit earned from producing and selling a good or service
#20
What is the 'Ricardian equivalence'?
A theory stating that consumers will increase savings in anticipation of future tax increases
A theory stating that consumers will decrease savings in anticipation of future tax decreases
A theory stating that government budget deficits have no effect on consumption
A theory stating that government budget deficits increase consumption in the short run but decrease it in the long run