#1
Which of the following is NOT considered a factor of production?
#2
What does GDP stand for?
Gross Domestic Product
Global Development Plan
Government Development Policy
General Domestic Production
#3
What is the opportunity cost?
The cost of an opportunity
The value of the next best alternative forgone
The total cost of production
The total cost of all resources used
#4
What is the main function of central banks in a country's economy?
To control the government budget
To regulate the stock market
To control the money supply and interest rates
To set taxes
#5
What is the law of diminishing marginal returns?
As the quantity of a variable input increases, the marginal product of that input decreases.
As the quantity of a variable input increases, the marginal product of that input increases.
As the quantity of a variable input decreases, the marginal product of that input increases.
As the quantity of a variable input decreases, the marginal product of that input decreases.
#6
What is the primary goal of monetary policy?
To control inflation
To regulate government spending
To control exchange rates
To regulate international trade
#7
In economics, what is the law of demand?
As the price of a good increases, the quantity demanded increases.
As the price of a good decreases, the quantity demanded decreases.
As the price of a good increases, the quantity demanded decreases.
As the price of a good decreases, the quantity demanded increases.
#8
What is the formula to calculate inflation rate?
((Current year GDP - Previous year GDP) / Previous year GDP) x 100
((Current year GDP - Previous year GDP) / Current year GDP) x 100
((Previous year GDP - Current year GDP) / Current year GDP) x 100
((Previous year GDP - Current year GDP) / Previous year GDP) x 100
#9
What does the term 'fiscal policy' refer to?
Government policy related to taxation and spending
Central bank's policy on interest rates
Policy to regulate international trade
Policy to control inflation
#10
What is the primary goal of a monopoly?
To maximize consumer surplus
To achieve allocative efficiency
To maximize total revenue
To minimize production costs
#11
What is the term used to describe a situation where there is a sustained increase in the general price level of goods and services in an economy over a period of time?
Recession
Deflation
Stagflation
Inflation
#12
Which of the following is NOT a characteristic of perfect competition?
Many buyers and sellers
Homogeneous products
Barriers to entry
Perfect information
#13
What is the term used to describe a situation where one party is more informed than the other in a transaction?
Market equilibrium
Asymmetric information
Price ceiling
Monopoly
#14
What is the term used to describe a market structure with many buyers and sellers, with no single buyer or seller able to influence the market price?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#15
What is the term used to describe a situation where the quantity of goods and services demanded exceeds the quantity supplied, resulting in higher prices?
Surplus
Shortage
Equilibrium
Scarcity
#16
Which of the following is NOT a tool of fiscal policy?
Government spending
Taxation
Money supply
Transfer payments
#17
What is the term used to describe a situation where the government's total expenditures exceed its total revenues during a specific period?
Budget deficit
Budget surplus
Fiscal surplus
Fiscal deficit