#1
Which of the following is considered a basic economic problem?
Unlimited wants and limited resources
Unlimited wants and unlimited resources
Limited wants and unlimited resources
Limited wants and limited resources
#2
What does GDP stand for in economics?
Gross Domestic Profit
Gross Domestic Product
General Demand and Price
Global Development Plan
#3
Which economic indicator is used to measure the average change in prices of goods and services in an economy over time?
GDP
Inflation rate
Unemployment rate
Interest rate
#4
What is the term used to describe the total value of goods and services produced by a country in a specific period of time, usually a year?
Gross National Product (GNP)
Gross Domestic Product (GDP)
Net Domestic Product (NDP)
Net National Product (NNP)
#5
What is the term for the increase in the general price level of goods and services in an economy over time?
Deflation
Stagflation
Inflation
Hyperinflation
#6
Which economic concept measures the responsiveness of quantity demanded to a change in price?
Inflation
Elasticity
Monopoly
Marginal Utility
#7
What does NAFTA stand for?
North American Financial Trade Agreement
National Association of Food and Trade Allies
North American Free Trade Agreement
New Age Finance and Technology Association
#8
What does the term 'opportunity cost' represent in economics?
The total cost of producing a good or service
The cost of an alternative that must be forgone to pursue a certain action
The cost of labor in a production process
The cost of raw materials used in production
#9
What is the term for a market structure where there is only one seller of a unique product with no close substitutes?
Oligopoly
Monopoly
Monopolistic competition
Perfect competition
#10
Which of the following is NOT a characteristic of perfect competition?
Many buyers and sellers
Homogeneous products
Barriers to entry
Perfect information
#11
Which economic theory suggests that governments should increase spending and decrease taxes during economic downturns?
Monetarism
Austrian Economics
Keynesian Economics
Supply-side Economics
#12
Which of the following best describes the 'Phillips Curve' in economics?
A curve showing the relationship between unemployment and inflation
A curve showing the relationship between interest rates and investment
A curve showing the relationship between supply and demand
A curve showing the relationship between income and consumption
#13
What is the term used to describe a tax system where the average tax rate increases as the taxpayer's income increases?
Progressive tax
Regressive tax
Proportional tax
Flat tax
#14
What does the term 'comparative advantage' refer to in international trade?
When a country can produce a good at a lower opportunity cost than another country
When a country can produce more of a good using the same amount of resources
When a country has absolute superiority in producing all goods
When a country can produce all goods more efficiently than another country
#15
What is the term used to describe a tax system where the tax rate remains constant regardless of the level of income?
Progressive tax
Regressive tax
Proportional tax
Flat tax