#1
What is the law of demand?
As price increases, quantity demanded increases
ExplanationInverse relationship between price and quantity demanded.
#2
What is the formula for calculating GDP (Gross Domestic Product)?
Consumption + Investment + Government Spending + Exports - Imports
ExplanationTotal value of all goods and services produced within a country's borders.
#3
What is the 'invisible hand' concept in economics?
The idea that self-interest guides individuals to promote the social interest
ExplanationUnintended social benefits from individual actions.
#4
What is the main function of the Federal Reserve System in the United States?
Monetary policy regulation
ExplanationCentral bank responsible for monetary policy.
#5
Which of the following is a determinant of supply?
Technology
ExplanationFactor affecting the quantity of a good producers are willing to supply.
#6
Which of the following is an example of a positive externality?
A beekeeper's bees pollinating nearby crops
ExplanationA beneficial side effect benefiting others not directly involved.
#7
What is the equation for calculating price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
ExplanationMeasure of responsiveness of quantity demanded to price change.
#8
What is the Tragedy of the Commons?
A situation where individuals overuse or deplete a shared resource
ExplanationExploitation of common resources leading to depletion.
#9
In economics, what does the term 'elasticity' refer to?
The responsiveness of quantity demanded to a change in price
ExplanationMeasure of responsiveness of demand to price changes.
#10
What is the law of diminishing marginal utility?
As quantity consumed increases, marginal utility decreases
ExplanationDecrease in satisfaction or usefulness from each additional unit.
#11
Which of the following is a characteristic of monopolistic competition?
Few sellers selling differentiated products
ExplanationMany firms offering similar but not identical products.
#12
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and sellers
ExplanationNumerous buyers and sellers with identical products.
#13
Which of the following is NOT a characteristic of a monopoly?
Homogeneous product
ExplanationSingle seller with no close substitutes.
#14
Which of the following is a characteristic of oligopoly?
Few firms selling differentiated products
ExplanationMarket dominated by a few large firms.
#15
What is the Phillips Curve?
A curve showing the relationship between inflation and unemployment.
ExplanationTrade-off between inflation and unemployment rates.