#1
What is the primary function of an entrepreneur?
To innovate and take risks
ExplanationEntrepreneurs drive innovation and embrace risks to create and develop new ventures.
#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)
ExplanationGross Domestic Product (GDP) measures the total economic output of a country.
#3
Which of the following is NOT a factor of production?
Money
ExplanationMoney is not a factor of production; it is a medium of exchange in economic transactions.
#4
What is the term for the additional revenue generated from selling one more unit of a good?
Marginal revenue
ExplanationMarginal revenue is the extra income from selling an additional unit of a product.
#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)
ExplanationGross Domestic Product (GDP) measures the overall economic output of a country.
#6
What is the term for the rate at which one currency can be exchanged for another?
Exchange rate
ExplanationExchange rate represents the value of one currency in terms of another in the foreign exchange market.
#7
Which of the following is a characteristic of perfect competition?
Homogeneous products
ExplanationPerfect competition involves identical or homogeneous products among competing firms.
#8
Which of the following best describes the concept of 'opportunity cost'?
The cost of choosing one option over the next best alternative
ExplanationOpportunity cost is the value of the next best alternative forgone when a decision is made.
#9
What is the term for the point at which the quantity demanded of a good equals the quantity supplied?
Equilibrium
ExplanationEquilibrium is the point of balance where demand equals supply in a market.
#10
Which of the following is a characteristic of monopolistic competition?
Low barriers to entry
ExplanationMonopolistic competition allows relatively easy entry for new firms into the market.
#11
What does the term 'economies of scale' refer to?
The decrease in average total cost as production increases
ExplanationEconomies of scale occur when production increases, leading to a decrease in average cost per unit.
#12
What is the term for the measure of responsiveness of quantity demanded to a change in price?
Price elasticity of demand
ExplanationPrice elasticity of demand quantifies the sensitivity of quantity demanded to changes in price.
#13
Which economic system relies heavily on market forces and minimal government intervention?
Capitalism
ExplanationCapitalism emphasizes free markets and limited government involvement in economic activities.
#14
In which market structure do a few large firms dominate the market and have significant control over price?
Oligopoly
ExplanationOligopoly is characterized by a small number of large firms with substantial market influence.
#15
Which of the following is a characteristic of a perfectly elastic demand curve?
Horizontal line
ExplanationA perfectly elastic demand curve is represented as a horizontal line, indicating consumers will only buy at a specific price.