#1
1. What is the primary goal of microeconomics?
To analyze individual economic units
ExplanationFocuses on studying individual economic agents and their interactions.
#2
9. Which market structure is characterized by a large number of sellers, similar products, and easy entry and exit?
Perfect competition
ExplanationMarket with many buyers and sellers, leading to price equilibrium.
#3
18. Which economic indicator measures the average change in prices paid by consumers for goods and services over time?
Consumer Price Index (CPI)
ExplanationReflects inflation or deflation experienced by consumers.
#4
2. Which of the following is a measure of a country's economic performance?
All of the above
ExplanationIncludes GDP, unemployment rate, and inflation rate.
#5
3. What is the law of demand in economics?
As the price increases, demand decreases
ExplanationInverse relationship between price and quantity demanded.
#6
6. What is the purpose of fiscal policy?
To manage government spending and taxation
ExplanationGovernment's use of spending and taxation to influence the economy.
#7
8. What is the main function of the Federal Reserve in the United States?
Monetary policymaking
ExplanationRegulating the nation's monetary and financial system.
#8
11. What does the term 'elasticity of demand' measure?
The responsiveness of quantity demanded to price changes
ExplanationHow demand changes in response to price variations.
#9
4. What does the term 'opportunity cost' refer to?
The value of the next best alternative foregone
ExplanationThe cost of choosing one option over the next best alternative.
#10
5. In the business cycle, what phase follows a peak?
Recession
ExplanationEconomic downturn characterized by reduced economic activity.
#11
7. Which economic concept is represented by the formula: C + I + G + (X - M)?
Gross Domestic Product (GDP)
ExplanationTotal value of goods and services produced within a country's borders.
#12
10. What is the Tragedy of the Commons in the context of economics?
Overuse and depletion of shared resources
ExplanationWhen resources held in common are overexploited or depleted.
#13
12. In international trade, what does the term 'comparative advantage' refer to?
The ability to produce a good at a lower opportunity cost
ExplanationCountry's capability to produce a good with fewer resources.