#1
1. What is the law of demand in economics?
As prices increase, quantity demanded decreases
As prices increase, quantity demanded increases
As prices decrease, quantity demanded decreases
As prices decrease, quantity demanded increases
#2
4. What does GDP stand for in the context of economics?
Gross Domestic Product
General Demand Projection
Goods and Demand Protocol
Global Development Program
#3
10. What is the term for the total market value of all final goods and services produced in a country in a specific time period?
Net National Product
Gross National Income
Gross Domestic Product
Net Domestic Product
#4
12. In the context of international trade, what is a trade surplus?
When a country exports more goods than it imports
When a country imports more goods than it exports
When a country has a balanced trade with equal exports and imports
When a country has no trade activities
#5
20. What is the difference between nominal GDP and real GDP?
Nominal GDP is adjusted for inflation, while real GDP is not adjusted for inflation
Nominal GDP is not adjusted for inflation, while real GDP is adjusted for inflation
Nominal GDP and real GDP are the same concepts
Neither nominal nor real GDP considers inflation
#6
24. According to the law of supply, what happens to the quantity supplied as the price of a good or service increases?
Quantity supplied increases
Quantity supplied decreases
Quantity supplied remains constant
Quantity supplied becomes unpredictable
#7
2. Which of the following is considered a macroeconomic indicator?
Consumer Price Index (CPI)
Price elasticity of demand
Marginal utility
Supply and demand equilibrium
#8
3. What is the concept of opportunity cost?
The cost of production
The cost of choosing one option over the next best alternative
The monetary cost of goods and services
The cost of inflation
#9
7. What is the primary function of central banks in most economies?
Managing fiscal policy
Issuing currency
Regulating international trade
Enforcing taxation
#10
8. Which economic system relies on private ownership and market forces to determine production and distribution of goods and services?
Socialism
Communism
Capitalism
Mixed economy
#11
11. What is the concept of elasticity of demand?
The percentage change in quantity demanded relative to the percentage change in price
The total change in quantity demanded divided by the total change in price
The change in price divided by the change in quantity demanded
The change in quantity demanded divided by the change in income
#12
15. According to the law of diminishing returns, what happens as additional units of a variable input are added to a fixed input in production?
Total production increases indefinitely
Marginal product increases indefinitely
Marginal product eventually decreases
Total production remains constant
#13
17. Which economic concept represents the point at which the quantity of goods and services demanded equals the quantity supplied in the market?
Market equilibrium
Market surplus
Market shortage
Market elasticity
#14
5. According to the law of diminishing marginal utility, what happens as a person consumes more units of a good or service?
Total utility increases
Marginal utility increases
Marginal utility decreases
Total utility remains constant
#15
6. In economics, what is the Phillips Curve used to illustrate?
The relationship between inflation and unemployment
The relationship between supply and demand
The elasticity of demand
The concept of opportunity cost
#16
9. What is the Laffer Curve used to explain in economics?
The relationship between tax rates and government revenue
The impact of inflation on consumer spending
The concept of elasticity
The relationship between interest rates and investment
#17
13. What is the key difference between fiscal policy and monetary policy?
Fiscal policy is related to government spending and taxation, while monetary policy is related to money supply and interest rates
Fiscal policy is related to money supply and interest rates, while monetary policy is related to government spending and taxation
Both fiscal and monetary policy are terms used interchangeably
Neither fiscal nor monetary policy has any impact on the economy
#18
14. What is the Tragedy of the Commons in economics?
A situation where public goods are overused and depleted
A situation where private goods are overused and depleted
A situation of excess supply in the market
A situation of excess demand in the market
#19
16. What is the concept of fiscal deficit in government finance?
The excess of government expenditures over government revenue, excluding borrowing
The excess of government revenue over government expenditures, excluding borrowing
The total government debt
The amount of money printed by the government
#20
19. What is the concept of comparative advantage in international trade?
When a country can produce all goods more efficiently than other countries
When a country can produce a good at a lower opportunity cost than other countries
When a country focuses only on producing goods it can produce most efficiently
When a country has no advantage in international trade