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Economic Hardship and Social Struggles Quiz

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Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?

Inflation rate

Explanation

Inflation rate measures price changes over time for consumer goods and services.

What is the term used to describe a situation where the total value of a country's exports exceeds the total value of its imports?

Trade surplus

Explanation

Trade surplus occurs when exports exceed imports in value.

What is the economic term for a period of temporary economic decline during which trade and industrial activity are reduced?

Recession

Explanation

Recession refers to a temporary economic decline with reduced trade and industrial activity.

Which of the following is NOT considered a factor of production in classical economics?

Profit

Explanation

Profit is not considered a factor of production in classical economics.

What is the economic term for a situation where the government spends more money than it collects in revenue?

Budget deficit

Explanation

Budget deficit occurs when government spending exceeds revenue.

Which economic indicator measures the total value of all goods and services produced within a country's borders in a specific time period?

GDP

Explanation

GDP measures the total value of goods and services produced within a country.

Which economic theory suggests that the government should play a limited role in the economy and that free markets should govern economic activity?

Classical economics

Explanation

Classical economics advocates limited government intervention and free markets.

What is the term for the situation where a single supplier or producer controls the entire market for a product or service?

Monopoly

Explanation

Monopoly refers to the control of a market by a single supplier or producer.

What economic concept refers to the total value of all goods and services produced by a country within its borders in a specific time period?

Gross Domestic Product (GDP)

Explanation

GDP measures the total value of goods and services produced within a country.

#10

Which of the following is a characteristic of a perfectly competitive market?

Many buyers and sellers

Explanation

Perfectly competitive markets involve many buyers and sellers.

#11

Who is often considered the father of modern economics due to his pioneering work in economic theory?

Adam Smith

Explanation

Adam Smith is often considered the father of modern economics for his pioneering work.

#12

What economic term refers to the total amount of money in circulation within an economy at a specific time?

Money supply

Explanation

Money supply refers to the total amount of money circulating in an economy.

#13

Which of the following is NOT a component of Gross Domestic Product (GDP)?

Imports

Explanation

Imports are not considered a component of GDP.

#14

According to the law of demand, what happens to quantity demanded when the price of a good increases, assuming all other factors remain constant?

Quantity demanded decreases

Explanation

According to the law of demand, quantity demanded decreases as price increases.

#15

Which of the following is a primary goal of monetary policy?

Price stability

Explanation

Price stability is a primary goal of monetary policy.

#16

Which of the following is a measure of income inequality within a population?

Gini coefficient

Explanation

The Gini coefficient measures income inequality within a population.

#17

What economic term describes a situation where the price of goods and services rises over time, resulting in a decrease in the purchasing power of money?

Inflation

Explanation

Inflation is the rise in prices over time, reducing the purchasing power of money.

Economic Hardship and Social Struggles Quiz

Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?

What is the term used to describe a situation where the total value of a country's exports exceeds the total value of its imports?

What is the economic term for a period of temporary economic decline during which trade and industrial activity are reduced?

Which of the following is NOT considered a factor of production in classical economics?

What is the economic term for a situation where the government spends more money than it collects in revenue?

Which economic indicator measures the total value of all goods and services produced within a country's borders in a specific time period?

Which economic theory suggests that the government should play a limited role in the economy and that free markets should govern economic activity?

What is the term for the situation where a single supplier or producer controls the entire market for a product or service?

What economic concept refers to the total value of all goods and services produced by a country within its borders in a specific time period?

Which of the following is a characteristic of a perfectly competitive market?

Who is often considered the father of modern economics due to his pioneering work in economic theory?

What economic term refers to the total amount of money in circulation within an economy at a specific time?

Which of the following is NOT a component of Gross Domestic Product (GDP)?

According to the law of demand, what happens to quantity demanded when the price of a good increases, assuming all other factors remain constant?

Which of the following is a primary goal of monetary policy?

Which of the following is a measure of income inequality within a population?

What economic term describes a situation where the price of goods and services rises over time, resulting in a decrease in the purchasing power of money?

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