#1
Which of the following is an example of a positive externality?
Education benefiting society as a whole
ExplanationPositive externality: Benefits received by individuals not involved in the economic activity.
#2
What does GDP stand for in economics?
Gross Domestic Product
ExplanationGDP: Total value of goods and services produced in a country.
#3
What is the concept that describes the maximum amount of a good that consumers are willing and able to purchase at a given price?
Demand
ExplanationDemand: Quantity of a good consumers are willing to buy at a certain price.
#4
Which of the following is NOT a characteristic of a perfectly competitive market?
Price control by a single firm
ExplanationPerfect competition: No single firm can control the market price.
#5
What is the economic term for the highest-valued alternative that must be given up to engage in an activity?
Opportunity cost
ExplanationOpportunity cost: Value of the next best alternative foregone.
#6
Which economic concept refers to the additional cost of producing one more unit of a good or service?
Marginal cost
ExplanationMarginal cost: Extra cost of producing one more unit of a good.
#7
What is the Tragedy of the Commons?
A situation where individuals overuse or deplete a shared resource
ExplanationTragedy of the Commons: Overexploitation of shared resources.
#8
What does the term 'externality' refer to in economics?
An effect of a transaction that affects a third party
ExplanationExternality: Impact of a transaction on third parties.
#9
Which of the following is a measure of income inequality?
Gini coefficient
ExplanationGini coefficient: Measure of income distribution.
#10
What is the term for a market structure characterized by a few large firms dominating the market?
Oligopoly
ExplanationOligopoly: Market dominated by a small number of firms.
#11
Which economic theory argues that market economies tend towards full employment and economic stability without government intervention?
Classical economics
ExplanationClassical economics: Belief in self-regulating markets.
#12
What is the concept that describes the total value of goods and services produced within a country's borders in a specific time period?
Gross Domestic Product
ExplanationGDP: Total economic output of a country.
#13
What does the term 'elasticity' measure in economics?
The responsiveness of quantity demanded to a change in price
ExplanationElasticity: Sensitivity of quantity demanded to price changes.
#14
In economics, what is the term for a situation where one person's consumption of a good does not reduce its availability to others?
Public good
ExplanationPublic good: Consumed by one without reducing availability to others.
#15
Which of the following is NOT a factor of production in economics?
Technology
ExplanationFactors of production: Land, labor, capital, entrepreneurship.