#1
Which of the following is NOT an economic factor influencing market competition?
Social media presence
ExplanationNon-economic factor in market competition.
#2
What does 'GDP' stand for in economics?
Gross Domestic Product
ExplanationMeasure of a country's economic output.
#3
In economics, what does the term 'oligopoly' refer to?
A market with a few large sellers dominating the industry
ExplanationMarket dominated by few large sellers.
#4
What is 'monopolistic competition' in economics?
A market with numerous sellers offering differentiated products
ExplanationMany sellers offering differentiated products.
#5
What is 'price elasticity of demand'?
The responsiveness of quantity demanded to changes in price
ExplanationResponsiveness of demand to price changes.
#6
What is 'game theory' in economics?
The study of how people make decisions in competitive situations
ExplanationStudy of decision-making in competition.
#7
What is 'elasticity' in economics?
The responsiveness of quantity demanded to changes in price
ExplanationResponsiveness of demand to price changes.
#8
What does the term 'dumping' refer to in international trade?
The sale of goods in a foreign market at a lower price than in the domestic market
ExplanationSelling goods cheaper abroad.
#9
In economics, what is meant by 'opportunity cost'?
The value of the next best alternative foregone
ExplanationValue of foregone alternatives.
#10
What is a characteristic of a perfectly competitive market?
There is no product differentiation
ExplanationNo product differentiation.
#11
Which of the following is an example of a barrier to entry in a market?
Patents and intellectual property rights
ExplanationBarrier to entry: patents & IP rights.
#12
What is the 'Phillips curve'?
A curve illustrating the relationship between inflation and unemployment
ExplanationRelationship between inflation & unemployment.
#13
What is 'creative destruction' in economics?
The process by which new firms enter a market and disrupt established ones
ExplanationNew firms disrupting established ones.
#14
What is the 'Laffer curve'?
A curve showing the relationship between tax rates and government revenue
ExplanationRelationship between tax rates & revenue.
#15
What is the 'Tragedy of the Commons'?
The overuse and depletion of shared resources due to individual self-interest
ExplanationOveruse of shared resources due to self-interest.
#16
What is 'comparative advantage' in international trade?
The ability of a nation to produce a good at a lower opportunity cost than its trading partners
ExplanationProducing goods at lower opportunity cost than partners.