#1
What is the primary function of an entrepreneur?
To maximize profits
To manage resources efficiently
To innovate and take risks
To minimize costs
#2
What is the term used to describe the total value of goods and services produced in a country within a specific time period?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Consumer Surplus
Net Exports
#3
Which of the following is NOT a factor of production?
#4
What is the term for the additional revenue generated from selling one more unit of a good?
Total revenue
Average revenue
Marginal revenue
Total cost
#5
What is the term for the total value of all final goods and services produced within a country's borders in a given period of time?
Gross Domestic Product (GDP)
Gross National Product (GNP)
Net National Product (NNP)
National Income (NI)
#6
What is the term for the rate at which one currency can be exchanged for another?
Exchange rate
Interest rate
Inflation rate
Nominal rate
#7
Which of the following is a characteristic of perfect competition?
Many buyers and few sellers
Homogeneous products
High barriers to entry
Price-setting power for individual firms
#8
Which of the following best describes the concept of 'opportunity cost'?
The monetary cost of an opportunity
The benefit gained from choosing one option over another
The cost of choosing one option over the next best alternative
The cost of producing an additional unit of a good
#9
What is the term for the point at which the quantity demanded of a good equals the quantity supplied?
Equilibrium
Surplus
Shortage
Price floor
#10
Which of the following is a characteristic of monopolistic competition?
Many buyers and few sellers
Homogeneous products
Low barriers to entry
Price-setting power for individual firms
#11
What does the term 'economies of scale' refer to?
The increase in average total cost as production increases
The decrease in average total cost as production increases
The constant average total cost as production increases
The minimum level of output necessary to achieve profitability
#12
What is the term for the measure of responsiveness of quantity demanded to a change in price?
Price elasticity of demand
Income elasticity of demand
Cross-price elasticity of demand
Price elasticity of supply
#13
Which economic system relies heavily on market forces and minimal government intervention?
Capitalism
Socialism
Communism
Mixed economy
#14
In which market structure do a few large firms dominate the market and have significant control over price?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#15
Which of the following is a characteristic of a perfectly elastic demand curve?
Unitary elasticity
Steep slope
Horizontal line
Vertical line