#1
Which of the following is a characteristic of perfect competition?
Many buyers and sellers
Product differentiation
Barriers to entry
Price-setting power for individual firms
#2
Which economic concept refers to the total market value of all final goods and services produced within a country in a given period?
Gross Domestic Product (GDP)
Inflation rate
Consumer Price Index (CPI)
Unemployment rate
#3
What is the term used to describe a situation where a single firm controls the entire supply of a particular product or service?
Oligopoly
Monopoly
Monopsony
Duopoly
#4
Which of the following is a characteristic of a command economy?
Decentralized decision-making
Private ownership of resources
Central planning by the government
Market-driven prices
#5
Which of the following is a characteristic of a market economy?
Government ownership of key industries
Centralized decision-making
Private ownership of resources
Price controls on all goods and services
#6
What is the main purpose of a cartel in an industry?
To encourage competition
To increase prices by reducing output
To lower prices by increasing output
To eliminate all competitors
#7
What is a 'natural monopoly'?
A monopoly that arises due to government intervention
A monopoly that arises from economies of scale, making it more efficient to have one firm providing the good or service
A monopoly that dominates the market through aggressive tactics
A monopoly that arises from collusion among firms
#8
Which of the following is NOT a characteristic of monopolistic competition?
Many buyers and sellers
Product differentiation
Barriers to entry
Some control over price
#9
What is the term for a situation where one party in a transaction has more information than the other, giving them an advantage in the deal?
Perfect information
Asymmetric information
Market equilibrium
Pareto efficiency
#10
What is the term used to describe a situation where there is a sudden, widespread increase in prices, causing a decline in purchasing power?
Deflation
Recession
Stagflation
Inflation
#11
Which economic theory argues that individuals, firms, and institutions act in their own self-interest and make decisions to maximize their own welfare?
Keynesian economics
Behavioral economics
Neoclassical economics
Marxian economics
#12
In economics, what does the term 'opportunity cost' refer to?
The cost of producing an additional unit of a good
The value of the next best alternative that is forgone when a decision is made
The total cost of all inputs used in production
The total revenue generated from selling a product
#13
According to the law of demand, what happens to quantity demanded when price increases, assuming all other factors remain constant?
Quantity demanded increases
Quantity demanded decreases
Quantity demanded remains unchanged
Quantity demanded becomes infinite
#14
Which of the following is NOT a determinant of supply?
Technology
Government policies
Consumer preferences
Resource prices
#15
Which of the following is an example of a regressive tax?
Income tax
Sales tax
Property tax
Corporate tax