#1
In economics, what does the term 'invisible hand' refer to?
Government intervention in the market
The self-regulating nature of the market
A type of market failure
Consumer preferences
#2
Which economic concept refers to the additional satisfaction or utility derived from consuming one more unit of a good or service?
Marginal cost
Marginal utility
Opportunity cost
Average cost
#3
According to the law of demand, what happens to quantity demanded when the price of a good decreases?
Increases
Decreases
Remains unchanged
Becomes elastic
#4
Which economic system relies on the forces of supply and demand to determine prices and allocate resources?
Command economy
Mixed economy
Market economy
Planned economy
#5
Which economic market structure is characterized by a large number of sellers, similar but differentiated products, and ease of entry and exit?
Monopoly
Oligopoly
Monopolistic competition
Perfect competition
#6
What is the main purpose of fiscal policy?
Control the money supply
Influence interest rates
Stabilize the economy through government spending and taxation
Regulate international trade
#7
What is the primary function of a central bank in an economy?
Conducting monetary policy
Regulating stock markets
Determining fiscal policy
Controlling international trade
#8
What is the purpose of antitrust laws in the context of market competition?
Promote monopolies
Prevent unfair business practices and promote competition
Encourage collusion among firms
Control inflation
#9
Which type of unemployment is associated with changes in the business cycle and economic downturns?
Frictional unemployment
Cyclical unemployment
Structural unemployment
Seasonal unemployment
#10
What is the Phillips Curve used to depict in macroeconomics?
The trade-off between inflation and unemployment
The impact of government deficits on economic growth
The relationship between interest rates and investment
The effects of trade policies on international markets
#11
Which economic indicator measures the average prices of goods and services in an economy over a specific period?
GDP
Inflation rate
Unemployment rate
Interest rate
#12
What is the Tragedy of the Commons in economics?
A situation where private individuals overuse and deplete shared resources
A type of market failure caused by imperfect information
The failure of government intervention in the market
An economic recession
#13
In the context of international trade, what does the term 'dumping' refer to?
Exporting goods below cost to gain market share
Imposing tariffs on imports
Bilateral trade agreements
Currency devaluation
#14
Which economic theory advocates for minimal government intervention and emphasizes the role of free markets in allocating resources?
Keynesian economics
Monetarism
Classical liberalism
Marxism
#15
What is the Laffer Curve used to illustrate in economics?
The relationship between inflation and unemployment
The impact of government spending on economic growth
The relationship between tax rates and government revenue
The effects of interest rate changes on investment
#16
What is the main objective of trade protectionism in international trade?
Promote free trade
Encourage foreign investment
Protect domestic industries from foreign competition
Stabilize exchange rates