#1
1. What is the primary goal of microeconomics?
To study the overall economy
To analyze individual economic units
To focus on government policies
To examine international trade
#2
9. Which market structure is characterized by a large number of sellers, similar products, and easy entry and exit?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
#3
18. Which economic indicator measures the average change in prices paid by consumers for goods and services over time?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Producer Price Index (PPI)
Unemployment rate
#4
2. Which of the following is a measure of a country's economic performance?
Gross Domestic Product (GDP)
Inflation rate
Unemployment rate
All of the above
#5
3. What is the law of demand in economics?
As the price increases, demand decreases
As the price increases, demand increases
Price and demand are unrelated
Demand remains constant regardless of price changes
#6
6. What is the purpose of fiscal policy?
To regulate the money supply
To control inflation
To manage government spending and taxation
To influence interest rates
#7
8. What is the main function of the Federal Reserve in the United States?
Fiscal policymaking
Monetary policymaking
International trade negotiations
Consumer protection
#8
11. What does the term 'elasticity of demand' measure?
Consumer preferences
The responsiveness of quantity demanded to price changes
Market share
Total revenue
#9
4. What does the term 'opportunity cost' refer to?
The cost of goods and services
The value of the next best alternative foregone
The total cost of production
The cost of government interventions
#10
5. In the business cycle, what phase follows a peak?
Expansion
Recession
Trough
Recovery
#11
7. Which economic concept is represented by the formula: C + I + G + (X - M)?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Aggregate demand
Inflation rate
#12
10. What is the Tragedy of the Commons in the context of economics?
A market failure due to lack of competition
Overuse and depletion of shared resources
Excessive government intervention
A consequence of perfect competition
#13
12. In international trade, what does the term 'comparative advantage' refer to?
The ability to produce a good at a lower opportunity cost
Having the largest market share
Absolute control over a market
High tariffs and trade restrictions