#1
Which of the following is an example of a free market economy?
Sweden
North Korea
United States
Cuba
#2
What does GDP stand for?
Gross Domestic Product
Government Department Program
General Distribution Process
Growth Development Potential
#3
What is the term used to describe a sustained increase in the general price level of goods and services in an economy?
Recession
Deflation
Stagflation
Inflation
#4
What is the term used to describe the maximum price that can legally be charged for a good or service?
Price floor
Price ceiling
Equilibrium price
Market price
#5
Which of the following is a characteristic of monopolistic competition?
Homogeneous products
Many buyers and sellers
Price takers
Product differentiation
#6
Which of the following is NOT a tool of fiscal policy?
Government spending
Taxation
Monetary policy
Transfer payments
#7
What is the primary goal of monetary policy?
Maximizing government revenue
Stabilizing prices and controlling inflation
Regulating international trade
Increasing consumer spending
#8
What is the name of the economic theory that advocates for minimal government intervention in the economy?
Keynesian economics
Socialism
Classical economics
Laissez-faire economics
#9
Which of the following is an example of an external cost?
Private education fees
Pollution from a factory
Healthcare subsidies
Road construction
#10
What is the term used to describe the situation where the government spends more money than it collects in revenue?
Budget deficit
National debt
Budget surplus
Fiscal equilibrium
#11
Which economist is associated with the concept of 'invisible hand'?
John Maynard Keynes
Milton Friedman
Adam Smith
Karl Marx
#12
Which of the following is NOT a characteristic of perfect competition?
Homogeneous products
Many buyers and sellers
Barriers to entry
Perfect information
#13
What is the name of the principle that states as the production of a good increases, the marginal cost of producing one more unit also increases?
Diminishing marginal utility
Economies of scale
Marginal cost principle
Law of diminishing returns
#14
What is the name of the market structure characterized by a single seller with high barriers to entry?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
#15
In economics, what does the term 'opportunity cost' refer to?
The cost of producing one more unit of a good
The value of the best alternative foregone
The total cost of inputs used in production
The cost of purchasing goods and services