#1
Which of the following is a basic principle of economics?
Scarcity
Abundance
Overproduction
Waste
#2
What does the 'law of demand' state?
As the price of a good increases, the quantity demanded increases.
As the price of a good increases, the quantity demanded decreases.
As the price of a good decreases, the quantity demanded increases.
As the price of a good decreases, the quantity demanded decreases.
#3
What is the term for the increase in the general level of prices over a period of time?
Deflation
Stagflation
Inflation
Hyperinflation
#4
In economics, what does the 'law of supply' state?
As the price of a good increases, the quantity supplied decreases.
As the price of a good increases, the quantity supplied increases.
As the price of a good decreases, the quantity supplied decreases.
As the price of a good decreases, the quantity supplied increases.
#5
What is the term for the situation where a government spends more money than it receives as revenue, leading to increased borrowing?
Deficit spending
Fiscal surplus
Monetary easing
Quantitative tightening
#6
What is the term for the total amount of money a company receives from selling its goods or services?
#7
What is the term used to describe the total value of all goods and services produced within a country in a given period?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Inflation Rate
Unemployment Rate
#8
In economics, what does 'elasticity' measure?
The responsiveness of quantity demanded to changes in price.
The total revenue of a firm.
The level of government intervention in the market.
The level of production efficiency.
#9
What does the term 'opportunity cost' refer to in economics?
The monetary cost of an opportunity
The value of the next best alternative foregone
The total cost of production
The profit gained from an opportunity
#10
Which of the following is a characteristic of a perfectly competitive market?
There are many sellers and many buyers
There are few sellers and many buyers
There are many sellers and few buyers
There are few sellers and few buyers
#11
Which economic indicator measures the percentage of people who are willing and able to work, but cannot find employment?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Inflation Rate
Unemployment Rate
#12
What is the primary role of the Federal Reserve System in the United States?
Regulating international trade
Setting fiscal policy
Conducting monetary policy
Collecting taxes
#13
What is the concept that describes a market situation where a single seller dominates the entire market for a particular product?
Monopoly
Monopolistic Competition
Perfect Competition
Oligopoly