#1
Which of the following is a basic economic principle?
Opportunity cost
Quantum physics
Grammar rules
Geological formations
#2
What is the primary goal of microeconomics?
To understand the economy as a whole
To analyze individual economic units
To predict stock market fluctuations
To study historical economic trends
#3
What does the term 'opportunity cost' refer to in economics?
The cost of goods and services
The value of the next best alternative forgone
The total revenue of a firm
The total expenses of a household
#4
Which of the following is not a factor of production?
#5
What is the concept of 'marginal utility' in economics?
The total satisfaction gained from consuming all units of a good
The additional satisfaction gained from consuming one more unit of a good
The total satisfaction gained from consuming one unit of a good
The satisfaction gained from consuming the last unit of a good
#6
What does the 'Laffer curve' illustrate in economics?
The relationship between inflation and unemployment
The relationship between government spending and national debt
The relationship between tax rates and tax revenue
The relationship between interest rates and investment
#7
What is the law of demand in economics?
As the price increases, demand decreases
As the price increases, demand increases
As the price decreases, demand decreases
As the price decreases, demand increases
#8
What is a production possibility frontier (PPF) used to represent?
The maximum combination of goods that can be produced with available resources
The minimum level of production achievable
The distribution of wealth in a society
The total cost of production
#9
In economics, what does 'ceteris paribus' mean?
All else being equal
All things being different
All things being constant
All things being variable
#10
What is the formula for calculating gross domestic product (GDP)?
Consumption + Investment + Government Spending + Net Exports
Consumption + Investment + Exports - Imports
Consumption - Investment + Government Spending + Net Exports
Consumption - Investment + Exports - Imports
#11
What is 'elasticity of supply'?
The responsiveness of quantity supplied to changes in price
The responsiveness of quantity demanded to changes in price
The measure of how producers respond to changes in consumer preferences
The measure of how demand changes in response to changes in income
#12
What is the 'Phillips curve' used to represent?
The relationship between inflation and unemployment
The relationship between interest rates and investment
The relationship between government spending and national debt
The relationship between tax rates and tax revenue
#13
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded divided by percentage change in price
Percentage change in price divided by percentage change in quantity demanded
Total quantity demanded divided by total price
Total price divided by total quantity demanded
#14
Which of the following is a characteristic of a perfectly competitive market?
A small number of firms dominate the market
Products are differentiated
Barriers to entry exist
Firms are price takers
#15
In economics, what is 'consumer surplus'?
The difference between the price consumers are willing to pay and the price they actually pay
The difference between the price producers are willing to accept and the price they actually receive
The total satisfaction gained from consuming a good
The additional satisfaction gained from consuming one more unit of a good
#16
What is 'comparative advantage' in international trade?
The ability of a country to produce a good using fewer resources than another country
The ability of a country to produce all goods more efficiently than another country
The willingness of a country to trade its goods at lower prices than other countries
The ability of a country to produce a good at the lowest possible cost
#17
What is the 'Ricardian equivalence' proposition in economics?
Government budget deficits have no effect on aggregate demand
Tax cuts financed by government borrowing have no effect on consumption
Government spending can offset changes in private sector spending
Changes in government spending directly affect consumer confidence