#1
What is the concept of 'opportunity cost' in economics?
The cost of production
The value of the best alternative forgone in order to choose one option
The cost of goods and services in the market
The cost of government expenditures
#2
Which economic indicator is often considered a measure of a country's standard of living?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment rate
Exchange rate
#3
Which economic system relies on market forces to determine prices and allocate resources?
Socialism
Communism
Capitalism
Mixed economy
#4
In the context of market structures, which type of market has the least degree of competition?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#5
In the context of economic indicators, what does the 'Consumer Confidence Index' measure?
The level of trust consumers have in financial institutions
The likelihood of consumers making significant purchases
The rate of inflation experienced by consumers
The overall economic output of a country
#6
In finance, what is the primary role of an 'options contract'?
To provide insurance against market fluctuations
To represent ownership of a company's stock
To facilitate currency exchange
To grant the right to buy or sell an asset at a predetermined price
#7
Which of the following is a characteristic of a perfectly competitive market?
Few sellers
Product differentiation
Price taker
Barriers to entry
#8
What does the term 'elasticity of demand' measure?
Consumer satisfaction
Sensitivity of quantity demanded to price changes
Market share
Production efficiency
#9
What is the law of diminishing marginal returns in economics?
As production increases, marginal cost decreases
As production increases, marginal product increases indefinitely
As production increases, additional input yields smaller increases in output
As production increases, total cost remains constant
#10
What is the main goal of antitrust laws in economics?
To encourage monopolies for economic stability
To promote fair competition and prevent monopolistic practices
To increase government control over industries
To eliminate competition for efficient resource allocation
#11
What is the primary function of the World Trade Organization (WTO) in the global economy?
Regulating national currencies
Promoting international trade and resolving trade disputes
Implementing fiscal policies
Controlling global commodity prices
#12
In finance, what does the term 'liquidity' refer to?
The ease of converting an asset into cash without affecting its price
The total value of a firm's assets
The level of profitability in a market
The ratio of debt to equity in a company
#13
In macroeconomics, what is the primary focus of fiscal policy?
Controlling inflation
Stabilizing employment and economic growth
Regulating financial markets
Promoting international trade
#14
In the context of supply and demand, what happens when the government imposes a price ceiling below the equilibrium price?
Surplus
Shortage
Equilibrium is maintained
Price increases
#15
What is the difference between monetary policy and fiscal policy?
Monetary policy is controlled by the government, while fiscal policy is controlled by the central bank
Monetary policy involves changes in government spending, while fiscal policy involves changes in the money supply
Monetary policy involves changes in interest rates and money supply, while fiscal policy involves changes in government spending and taxation
Fiscal policy involves changes in interest rates, while monetary policy involves changes in taxation
#16
What is the Phillips Curve in economics?
A curve showing the relationship between inflation and unemployment
A curve depicting the relationship between supply and demand
A curve illustrating the impact of government spending on GDP
A curve representing the elasticity of demand
#17
What is the concept of 'comparative advantage' in international trade?
The ability of a country to produce a good with fewer resources than another country
The absolute advantage of a country in producing all goods
The equal distribution of resources among trading partners
The protectionist policies adopted by a country to limit imports
#18
What is the meaning of the term 'Gini coefficient' in economics?
A measure of income inequality within a population
A measure of government expenditure
A measure of inflation rate
A measure of interest rates