#1
1. What is the law of demand in economics?
As price increases, quantity demanded increases.
As price decreases, quantity demanded increases.
As price increases, quantity demanded decreases.
As price decreases, quantity demanded decreases.
#2
6. What does the term 'elasticity' measure in economics?
The responsiveness of quantity demanded to a change in price.
The total revenue of a firm.
The fixed costs of production.
The rate of inflation.
#3
11. What is the Tragedy of the Commons in economics?
A situation where individuals act in their own self-interest, depleting shared resources and leading to a negative outcome for everyone.
A market failure caused by the lack of government intervention.
A situation where the government controls all resources.
A condition of perfect competition in the market.
#4
16. What is the concept of 'marginal cost' in economics?
The additional cost of producing one more unit of a good or service.
The total cost of producing all units of a good or service.
The fixed cost of production.
The average cost of production.
#5
21. What is the concept of 'moral hazard' in the context of economics and finance?
The risk that individuals or institutions may take greater risks because they do not have to bear the full consequences of those risks.
The ethical dilemma faced by policymakers in economic decision-making.
The impact of economic policies on moral values.
The tendency of individuals to act in their own self-interest for the greater good.
#6
2. Which of the following is a measure of a country's economic output?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment Rate
Inflation Rate
#7
3. What is the opportunity cost of a decision?
The total cost incurred in making the decision.
The value of the best alternative forgone.
The monetary cost associated with the decision.
The profit gained from the decision.
#8
7. Which economic system is characterized by government ownership of the means of production?
Capitalism
Socialism
Communism
Mixed economy
#9
8. What is the Phillips Curve in economics used to represent?
The relationship between inflation and unemployment.
The production possibilities frontier.
The law of diminishing returns.
The circular flow of income.
#10
12. What is the main function of central banks in a country's economy?
To control the government budget.
To regulate and supervise commercial banks.
To set fiscal policy.
To conduct monetary policy and control the money supply.
#11
13. In the context of international trade, what is a tariff?
A tax imposed on exports.
A subsidy given to domestic producers.
A restriction on the quantity of imports.
A payment made by the government to foreign exporters.
#12
4. In macroeconomics, what does the term 'inflation' refer to?
Increase in the supply of money.
Decrease in the overall price level of goods and services.
Rapid economic growth.
Increase in the overall price level of goods and services.
#13
5. According to the law of diminishing marginal utility, what happens as a person consumes more units of a good or service?
Total utility increases at an increasing rate.
Marginal utility increases.
Total utility increases at a decreasing rate.
Marginal utility decreases.
#14
9. What is the difference between a progressive tax and a regressive tax?
Progressive tax takes a higher percentage from higher incomes, while regressive tax takes a higher percentage from lower incomes.
Progressive tax takes a higher percentage from lower incomes, while regressive tax takes a higher percentage from higher incomes.
Both progressive and regressive taxes take the same percentage from all incomes.
There is no difference between progressive and regressive taxes.
#15
10. What is the concept of 'comparative advantage' in international trade?
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 using more 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 with the highest market demand.
#16
14. What is the concept of 'perfect competition' in microeconomics?
A market structure with a single seller dominating the entire market.
A market structure with many buyers and sellers, homogeneous products, and free entry and exit.
A market structure with a few large firms dominating the market.
A market structure where prices are determined by the government.
#17
15. What is the difference between fiscal policy and monetary policy?
Fiscal policy involves changes in the money supply, while monetary policy involves changes in government spending and taxation.
Fiscal policy involves changes in government spending and taxation, while monetary policy involves changes in the money supply.
There is no difference between fiscal and monetary policy.
Fiscal policy and monetary policy both focus on regulating international trade.