#1
Which of the following is a characteristic of a perfectly competitive market?
There are many buyers and sellers in the market.
ExplanationPresence of numerous buyers and sellers.
#2
What does GDP stand for?
Gross Domestic Product
ExplanationMeasure of a country's economic output.
#3
What is the term for the total value of goods and services produced within a country in a specific time period?
Gross Domestic Product (GDP)
ExplanationMeasure of economic activity within a nation.
#4
What is the term for the total market value of all final goods and services produced within a country in a given period of time?
Gross Domestic Product (GDP)
ExplanationAggregate value of a nation's production.
#5
What is the term for the study of how people make decisions in situations where resources are scarce?
Microeconomics
ExplanationStudy of individual economic behavior.
#6
Which of the following is an example of a regressive tax?
Sales tax
ExplanationTax disproportionately affecting lower incomes.
#7
What is the concept of 'opportunity cost' in economics?
The benefit foregone of the next best alternative
ExplanationValue of the best alternative forgone.
#8
What is the formula for calculating the price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
ExplanationMeasure of responsiveness of demand to price changes.
#9
What is the main function of central banks like the Federal Reserve in the United States or the European Central Bank?
Monetary policy implementation
ExplanationControl and regulation of the money supply.
#10
What is the term for a situation where a single firm or group of firms dominates a market?
Monopoly
ExplanationMarket domination by a single entity.
#11
In the context of inflation, what does 'deflation' refer to?
A decrease in the general price level of goods and services
ExplanationFall in overall price levels.
#12
What is the term for a situation where one party in a transaction has more information than the other, leading to an imbalance in power?
Asymmetric information
ExplanationInformational advantage in transactions.
#13
What is the 'Laffer curve' used to illustrate in economics?
The relationship between tax rates and tax revenue
ExplanationTrade-off between tax rates and tax revenue.
#14
What is the concept of 'marginal utility' in economics?
The additional satisfaction gained from consuming one more unit of a good or service
ExplanationIncremental satisfaction from consumption.
#15
What does the term 'comparative advantage' refer to in economics?
The ability of a country to produce a good at a lower opportunity cost than another country
ExplanationEfficiency in production relative to other countries.