Economic Factors in Market Dynamics Quiz

Technological advancements are considered an economic factor affecting market dynamics.

GDP stands for Gross Domestic Product.

Tax cuts are an example of a fiscal policy tool used by governments to stimulate economic growth.

A perfectly competitive market is characterized by few buyers and many sellers.

Total cost is the economic term for the total cost of producing a specific quantity of a good or service.

Inflation is the economic term for constantly rising prices for goods and services.

Classical economics argues for non-interference in markets and the optimization of economic outcomes through free markets.

The 'invisible hand' refers to the self-regulating nature of markets in economics.

Diminishing marginal returns describes the situation where the cost of producing one more unit of a good increases as more units are produced.

Consumer preferences are not a determinant of supply.

Gross Domestic Product (GDP) is the total value of goods and services produced by a country in a given period.

Demand is the economic term for the maximum amount of a good that consumers are willing and able to purchase at a given price level.

According to the law of demand, the price of a good and the quantity demanded are inversely proportional.

OPEC stands for Organization of Petroleum Exporting Countries in economics.

Minimum efficient scale is the term for the level of output where average total cost is minimized.