#1
Which economic model assumes that consumers act rationally to maximize their utility?
Keynesian Economics
Neoclassical Economics
Behavioral Economics
Marxian Economics
#2
What does the 'law of demand' state?
As prices decrease, quantity demanded decreases.
As prices decrease, quantity demanded increases.
As prices increase, quantity demanded decreases.
As prices increase, quantity demanded increases.
#3
What does the term 'ceteris paribus' mean in economics?
All other factors remaining constant.
All other factors changing simultaneously.
Factors influencing each other.
Random fluctuations in economic variables.
#4
Which of the following is NOT a characteristic of a monopolistic competition market structure?
Many buyers and many sellers
Product differentiation
Price taker
Limited barriers to entry
#5
Which economic concept refers to the additional cost incurred by producing one more unit of a good or service?
Marginal Benefit
Opportunity Cost
Marginal Cost
Total Cost
#6
What does the term 'elasticity' measure in economics?
The responsiveness of quantity demanded to changes in income.
The responsiveness of quantity demanded to changes in price.
The responsiveness of quantity supplied to changes in income.
The responsiveness of quantity supplied to changes in price.
#7
Which economic model suggests that government intervention in the economy is necessary to achieve full employment and stabilize economic fluctuations?
Monetarism
Supply-side Economics
Keynesian Economics
Austrian Economics
#8
What is the 'Phillips Curve' relationship?
Inverse relationship between inflation and unemployment
Direct relationship between inflation and unemployment
Inverse relationship between inflation and economic growth
Direct relationship between inflation and economic growth
#9
What is the primary assumption of the Rational Expectations Theory?
Consumers always make rational decisions.
Government intervention is necessary for economic stability.
Expectations of economic agents are formed based on all available information.
Markets are always in equilibrium.
#10
What is the primary focus of Game Theory in economics?
Maximizing individual utility
Analyzing strategic interactions between rational decision-makers
Predicting consumer behavior
Studying market equilibrium
#11
What is the main idea behind the Tragedy of the Commons?
Private ownership leads to optimal resource allocation.
Individuals tend to overuse and deplete commonly owned resources.
Government intervention is necessary for environmental conservation.
Public goods are always underprovided in a market economy.
#12
What is the primary assumption of the Perfect Competition model?
There are many buyers and many sellers in the market.
There is only one buyer and one seller in the market.
Market participants have perfect information about prices and products.
Market participants have no influence on market prices.
#13
According to the Efficient Market Hypothesis, what happens in an efficient market?
Stock prices reflect all available information.
Stock prices are determined solely by government policies.
Stock prices are always overvalued.
Stock prices are determined by speculation.
#14
In the Solow Growth Model, what does the steady state represent?
A state of perpetual economic growth
A state of zero population growth
A state of constant capital per worker
A state of declining productivity
#15
What does the 'Laffer Curve' depict?
The relationship between tax rates and government revenue
The relationship between interest rates and investment
The relationship between inflation and unemployment
The relationship between trade balance and exchange rates
#16
What is the main objective of the Cobb-Douglas production function?
To maximize profit by minimizing production costs.
To describe the relationship between inputs and outputs in production.
To determine the optimal level of output for a firm.
To analyze the impact of technology on economic growth.
#17
What is the primary assumption of the Real Business Cycle theory?
Markets are always in equilibrium.
Prices and wages are inflexible.
Business cycles are caused by exogenous shocks to technology or productivity.
Government intervention is necessary for economic stability.
#18
What is the primary assumption of the Ricardian Equivalence theorem?
Consumers have perfect information about prices and products.
Consumers always save their disposable income.
Government deficits do not affect consumption decisions.
Government spending stimulates economic growth.