#1
In economics, what does equilibrium refer to?
A state where demand exceeds supply
A state where supply exceeds demand
A state where supply equals demand
A state where neither supply nor demand exists
#2
Which of the following is NOT a characteristic of economic equilibrium?
Stable prices
Excess demand or supply
Quantity demanded equals quantity supplied
Market clearing
#3
Which of the following is a characteristic of a competitive market in equilibrium?
Excess demand
Excess supply
Long queues
No individual buyer or seller has the power to influence the market price
#4
What happens to the equilibrium price and quantity if there is an increase in both demand and supply?
Equilibrium price increases, equilibrium quantity decreases
Equilibrium price decreases, equilibrium quantity increases
Equilibrium price and quantity both increase
Equilibrium price and quantity both decrease
#5
What is the condition for economic equilibrium in a perfectly competitive market?
Price equals average revenue
Price equals marginal cost
Price equals total revenue
Price equals total cost
#6
What is the significance of the equilibrium price in a market?
It maximizes producer surplus
It minimizes consumer surplus
It ensures the efficient allocation of resources
It leads to a decrease in total welfare
#7
Which of the following is a determinant of both demand and supply that can cause a shift in the equilibrium price and quantity?
Price of substitute goods
Technology
Government regulations
Income
#8
What term is used to describe a situation where there is no tendency for change?
Static equilibrium
Dynamic equilibrium
Stable equilibrium
Market equilibrium
#9
If the price in a market is above the equilibrium price, what is likely to happen?
Excess supply
Excess demand
No effect on quantity supplied
Increase in quantity demanded
#10
In a competitive market, what role does the price mechanism play in achieving equilibrium?
It adjusts demand to meet supply
It adjusts supply to meet demand
It sets a fixed price for all goods
It controls government intervention in the market
#11
What concept in economics is used to describe a situation where one party can't be better off without making another party worse off?
Market failure
Pareto efficiency
Price discrimination
Externalities
#12
What concept in economics suggests that the opportunity cost of production increases as more of a good is produced?
Law of diminishing returns
Elasticity of supply
Production possibility frontier
Law of increasing opportunity cost
#13
Which of the following factors can disrupt market equilibrium?
Technological advancements
Changes in consumer preferences
Government regulations
All of the above
#14
What does the concept of producer surplus represent in economics?
The difference between the minimum price a producer is willing to accept and the market price
The difference between the maximum price a consumer is willing to pay and the market price
The total revenue received by producers
The total profit earned by producers
#15
In economics, what does the term 'opportunity cost' refer to?
The cost of producing one more unit of a good
The value of the best alternative foregone
The total cost of producing a good
The revenue generated from selling a good