#1
What is the law of demand in economics?
As prices decrease, quantity demanded decreases.
ExplanationInverse relationship between price and quantity demanded.
#2
What is a monopoly?
A market structure with one seller and many buyers.
ExplanationSingle seller dominating the market.
#3
What does GDP stand for in economics?
Gross Domestic Product
ExplanationTotal value of goods and services produced within a country.
#4
What is a subsidy?
A payment made by the government to encourage consumption.
ExplanationFinancial aid to stimulate production or consumption.
#5
What is the law of supply in economics?
As prices increase, quantity supplied increases.
ExplanationDirect relationship between price and quantity supplied.
#6
Which of the following is not a characteristic of a perfectly competitive market?
Barriers to entry
ExplanationPerfect competition implies no barriers to entry.
#7
What is price elasticity of demand?
A measure of how responsive quantity demanded is to a change in price.
ExplanationQuantifies responsiveness of demand to price changes.
#8
What is the formula for calculating total revenue?
Price × Quantity Demanded
ExplanationTotal income from selling a given quantity of goods.
#9
What is a cartel?
A group of firms colluding to limit competition.
ExplanationConspiracy among firms to control market prices.
#10
Which of the following is a measure of income inequality?
Gini coefficient
ExplanationStatistical measure of distribution of income.
#11
What is market equilibrium?
A situation where quantity demanded equals quantity supplied.
ExplanationBalance between demand and supply in the market.
#12
What is a perfectly elastic demand curve?
A demand curve that is horizontal.
ExplanationDemand is infinitely responsive to price changes.