#1
Which of the following best describes the concept of opportunity cost?
The total cost of producing a good or service
The cost of forgoing the next best alternative when making a decision
The cost of purchasing a good or service
The monetary cost of production inputs
#2
In economics, what is the primary function of a market?
To regulate government intervention
To determine prices and allocate resources
To minimize consumer surplus
To equalize marginal utility
#3
What is the term used to describe the total value of all goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Aggregate Demand (AD)
Monetary Policy
#4
Which of the following is an example of a regressive tax?
Sales tax
Progressive income tax
Property tax
Corporate tax
#5
What is the primary goal of a firm in the context of profit maximization?
To increase market share
To minimize costs
To maximize revenue
To maximize profits
#6
Which of the following is a characteristic of a perfectly competitive market?
High barriers to entry
Many buyers and sellers with homogeneous products
Complete control over prices by firms
Extensive product differentiation
#7
What is the role of the Federal Reserve in the U.S. economy?
Setting fiscal policy
Regulating international trade
Controlling the money supply and interest rates
Enforcing antitrust laws
#8
What is the name of the market structure where there is only one seller of a particular product?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#9
In economics, what does the term 'elasticity' refer to?
The responsiveness of quantity demanded to a change in price
The total revenue generated from a good or service
The degree of government intervention in the market
The level of production efficiency
#10
What does the term 'inflation' refer to in economics?
A decrease in the overall level of prices
A decrease in the purchasing power of money
An increase in the overall level of prices
An increase in the supply of money
#11
Which economic concept describes the situation where the production of one good increases the opportunity cost of producing another good?
Absolute advantage
Comparative advantage
Law of demand
Law of increasing opportunity cost
#12
Which of the following is NOT a determinant of demand in economics?
Income
Price of the good
Consumer preferences
Cost of production
#13
What is the term used to describe a market condition where there is only one buyer for a product or service?
Oligopsony
Monopsony
Duopoly
Perfect competition
#14
What is the term used to describe a situation where the quantity demanded for a good or service is greater than the quantity supplied at a given price?
Surplus
Equilibrium
Shortage
Price floor
#15
What does the term 'economic efficiency' refer to?
The level of satisfaction derived from consuming a good or service
The level of output produced given available resources
The equitable distribution of income in society
The effectiveness of government policies in achieving economic goals