#1
Which economic system relies on private ownership of the means of production and operates mainly through market forces?
Command economy
Socialist economy
Mixed economy
Capitalist economy
#2
Who is considered the father of modern economics?
Adam Smith
Karl Marx
John Maynard Keynes
Milton Friedman
#3
Which of the following is a characteristic of a market economy?
Central planning by the government
Equal distribution of wealth
Private ownership of resources
Limited consumer choice
#4
Who developed the theory of comparative advantage?
Adam Smith
John Maynard Keynes
David Ricardo
Milton Friedman
#5
What is the term used to describe the total value of all final goods and services produced within a country's borders in a specific time period?
Gross National Product (GNP)
Net Domestic Product (NDP)
Net National Product (NNP)
Gross Domestic Product (GDP)
#6
Which of the following is NOT a component of GDP?
Consumption
Investment
Government spending
Imports
#7
What is the main feature of a command economy?
Private ownership of resources
Centralized government control
Market competition
Free market forces
#8
What is the term used to describe the total value of goods and services produced in a country in a given period, usually a year?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Inflation rate
Unemployment rate
#9
In economics, what does the term 'opportunity cost' refer to?
The cost of producing one more unit of a good
The total cost of production
The cost of the next best alternative foregone
The cost of inputs required for production
#10
Which of the following is NOT a characteristic of a traditional economy?
Reliance on custom and tradition
Centralized decision-making by government
Limited technological advancement
Subsistence agriculture
#11
What does the term 'fiscal policy' refer to in economics?
Government's regulation of interest rates
Government's management of the money supply
Government's use of taxation and spending to influence the economy
Government's control over trade policies
#12
Which of the following is a characteristic of a mixed economy?
Centralized government control over all economic activities
Private ownership of the means of production with minimal government intervention
No private ownership of resources
Combination of private and government ownership of resources
#13
Which economic concept refers to the situation where the amount of goods or services demanded exceeds the amount supplied, leading to higher prices?
Inflation
Deflation
Surplus
Shortage
#14
What is the term used to describe a sustained decrease in the general price level of goods and services in an economy?
Inflation
Hyperinflation
Deflation
Stagflation
#15
What does the term 'invisible hand' refer to in economics?
The government's regulation of economic activities
The self-regulating nature of the market
The influence of consumer preferences on production
The role of international trade in economic growth
#16
What does the term 'stagflation' describe in economics?
A period of high inflation and high unemployment
A period of low inflation and low unemployment
A period of high inflation and low unemployment
A period of low inflation and high unemployment
#17
What does the 'Laffer curve' illustrate in economics?
The relationship between inflation and unemployment
The effect of tax rates on government revenue
The impact of interest rates on investment
The relationship between supply and demand