#1
Who is often referred to as the 'Father of Economics'?
Adam Smith
ExplanationReferred to as the 'Father of Economics'.
#2
Which economic concept refers to the total value of all goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationTotal value of goods and services produced within a country's borders.
#3
What is the term for a situation where the government spends more money than it collects in revenue, leading to a budget deficit?
Fiscal deficit
ExplanationGovernment spending exceeds revenue, resulting in a budget deficit.
#4
In economic terms, what does the acronym NAFTA stand for?
North American Free Trade Agreement
ExplanationAcronym for North American Free Trade Agreement.
#5
In international trade, what does the term 'dumping' refer to?
Selling goods in a foreign market at a price lower than the cost of production
ExplanationSelling goods at a price lower than production cost in a foreign market.
#6
Which economic system is characterized by private ownership of the means of production and market-driven decision-making?
Capitalism
ExplanationPrivate ownership, market-driven decision-making.
#7
What is the Gross Domestic Product (GDP) used to measure in an economy?
Economic growth
ExplanationMeasures economic growth.
#8
Which government agency in the United States is responsible for monetary policy?
Federal Reserve
ExplanationResponsible for monetary policy in the United States.
#9
In the context of international trade, what does the term 'protectionism' refer to?
Economic isolationism
ExplanationEconomic isolationism in international trade.
#10
What economic indicator is used to measure the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?
Consumer Price Index (CPI)
ExplanationMeasures average change in prices paid by urban consumers.
#11
What is the primary function of the World Bank?
Providing financial and technical assistance for development projects
ExplanationProvides financial and technical assistance for development projects.
#12
Which of the following is a fiscal policy tool used by governments to stimulate economic activity during a recession?
Cutting taxes and increasing spending
ExplanationFiscal stimulus during a recession.
#13
In the context of economic development, what does the term 'brain drain' refer to?
Migration of skilled individuals abroad
ExplanationMigration of skilled individuals abroad.
#14
What is the Laffer Curve used to illustrate in the field of economics?
Taxation and government revenue
ExplanationIllustrates the relationship between taxation and government revenue.
#15
Who developed the theory of comparative advantage, which is fundamental to international trade?
David Ricardo
ExplanationDeveloper of the theory of comparative advantage.
#16
In economics, what does the term 'elasticity' refer to?
A measure of the responsiveness of quantity demanded to a change in price
ExplanationMeasures the responsiveness of quantity demanded to price change.
#17
Which economic theory suggests that government intervention is necessary to ensure a fair distribution of wealth and avoid extreme income inequality?
Socialism
ExplanationAdvocates government intervention for fair wealth distribution.