#1
In economics, what does GDP stand for?
Gross Domestic Product
ExplanationMeasure of a country's economic output.
#2
Which of the following is NOT a factor of production?
Demand
ExplanationNot a resource used in producing goods.
#3
What is the 'minimum wage'?
The lowest wage rate that an employer can legally pay its employees
ExplanationLegal floor on wage rates.
#4
What does the term 'supply and demand' refer to in economics?
The quantity of goods and services available and the desire of buyers for them
ExplanationInterplay between goods availability and buyers' desires.
#5
What is the concept of 'elasticity' in economics?
A measure of how responsive quantity demanded is to a change in price
ExplanationQuantifies demand sensitivity to price changes.
#6
What does the term 'opportunity cost' refer to in economics?
The value of the next best alternative that must be forgone when a choice is made
ExplanationValue of foregone alternatives when a choice is made.
#7
What does the term 'monopoly' refer to in economics?
A market with many buyers but only one seller
ExplanationSingle seller dominates market.
#8
What is the 'law of diminishing marginal utility'?
The principle that the more of a good a person consumes, the less satisfaction they derive from each additional unit
ExplanationDecrease in additional satisfaction per unit consumed.
#9
What does the term 'perfect competition' refer to in economics?
A market structure with many buyers and sellers, homogeneous products, and free entry and exit
ExplanationIdeal market structure with numerous small players.
#10
What is 'consumer surplus'?
The difference between the maximum price a consumer is willing to pay and the price they actually pay
ExplanationExtra value consumers get by paying less than their maximum willingness.
#11
What is the 'natural rate of unemployment'?
The level of unemployment that exists when the economy is at full employment
ExplanationBaseline unemployment in a healthy economy.
#12
What is the 'Phillips Curve' in economics?
A curve representing the relationship between inflation and unemployment
ExplanationIllustrates trade-off between inflation and unemployment.
#13
What is the 'Laffer Curve' in economics?
A curve representing the relationship between tax rates and tax revenue
ExplanationIllustrates optimal tax rate for revenue.
#14
What is the 'income elasticity of demand'?
A measure of how responsive quantity demanded is to a change in income
ExplanationDemand change sensitivity to income changes.
#15
What is 'comparative advantage'?
The ability of one country to produce a good or service at a lower opportunity cost than another country
ExplanationCountry's efficiency in resource allocation.