Economic Concepts and Terminology Quiz

Test your knowledge of inflation, GDP, market structures, monetary policy, and more with this macroeconomics quiz.

#1

Which of the following best defines inflation?

A decrease in the general price level of goods and services
An increase in the general price level of goods and services
Stable prices of goods and services over time
A decrease in the purchasing power of money
#2

What does GDP stand for?

Gross Domestic Product
Global Development Percentage
General Domestic Price
Goods and Services Development
#3

What is the term for the total value of all final goods and services produced within a country in a given period?

Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#4

Which of the following is a measure of the average level of prices of goods and services in an economy?

Unemployment Rate
Consumer Price Index (CPI)
Interest Rate
Exchange Rate
#5

What does the term 'opportunity cost' refer to in economics?

The cost of production
The cost of the next best alternative
The cost of labor
The cost of raw materials
#6

What is the term for the total value of goods and services produced within a country in a specific time period?

Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#7

What is the economic theory that suggests the government should not interfere with economic activities and markets?

Keynesian Economics
Monetarism
Fiscal Policy
Laissez-faire Economics
#8

What is the term for a market structure characterized by a large number of sellers and buyers of identical or similar products?

Oligopoly
Monopoly
Monopolistic Competition
Perfect Competition
#9

Which of the following is NOT a tool of monetary policy?

Open Market Operations
Reserve Requirements
Taxation
Discount Rate
#10

What is the term for a tax system where the tax rate decreases as the taxable amount increases?

Progressive tax
Proportional tax
Regressive tax
Flat tax
#11

Which of the following is not a factor of production?

Labor
Land
Capital
Profit
#12

What is the term for the situation where the quantity supplied of a good or service exceeds the quantity demanded?

Surplus
Shortage
Equilibrium
Scarcity
#13

What is the term for the measure of responsiveness of the quantity demanded of a good to a change in its price?

Income elasticity of demand
Cross-price elasticity of demand
Price elasticity of demand
Price elasticity of supply
#14

What is the name for the situation where a country can produce a good at a lower opportunity cost compared to another country?

Absolute advantage
Comparative advantage
Opportunity advantage
Trade advantage
#15

In economics, what does the term 'moral hazard' refer to?

The risk that one party may exploit information asymmetry
The risk that insured parties may take more risks because they are protected
The risk that an investment may fail
The risk of adverse selection in insurance markets

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