#1
Which of the following is NOT a characteristic of a perfectly competitive market?
Many buyers and sellers
Homogeneous products
Barriers to entry
Perfect information
#2
What does GDP stand for?
Gross Domestic Product
Global Demand and Production
General Development Program
Government Distribution Process
#3
What is the primary goal of monetary policy?
Maximizing employment
Minimizing inflation
Maximizing economic growth
Stabilizing financial markets
#4
Which of the following is a tool of fiscal policy?
Interest rates
Taxation
Money supply
Exchange rates
#5
What is the opportunity cost of a decision?
The cost of the next best alternative forgone
The total cost of all available alternatives
The monetary cost of the chosen option
The cost incurred after making the decision
#6
Which of the following is a characteristic of a command economy?
Private ownership of the means of production
Centralized government planning
Laissez-faire approach to regulation
Free market allocation of resources
#7
What is the 'Laffer Curve' used to illustrate?
The relationship between inflation and unemployment
The relationship between tax rates and tax revenue
The relationship between interest rates and investment
The relationship between supply and demand
#8
Which monetary policy tool involves the buying and selling of government securities?
Open market operations
Reserve requirements
Discount rate
Quantitative easing
#9
What does the Phillips Curve describe?
The relationship between unemployment and inflation
The relationship between wages and productivity
The relationship between government spending and GDP growth
The relationship between savings and investment
#10
Which of the following is a characteristic of monopolistic competition?
Many buyers and sellers
Homogeneous products
Significant barriers to entry
Product differentiation
#11
What does the term 'ceteris paribus' mean in economics?
All else being equal
Supply and demand
Marginal utility
Comparative advantage
#12
Which of the following is a function of central banks?
Regulating fiscal policy
Setting interest rates
Collecting taxes
Providing welfare benefits
#13
According to the law of demand, what happens when the price of a good increases?
Quantity demanded increases
Quantity demanded decreases
Quantity supplied increases
Quantity supplied decreases
#14
What is the 'tragedy of the commons'?
A market failure resulting from externalities
The depletion of shared resources due to individual self-interest
A situation where demand exceeds supply
The inability of a market to provide public goods
#15
What is the 'liquidity trap' in macroeconomics?
A situation where interest rates are high
A situation where monetary policy is ineffective
A situation where inflation is uncontrollable
A situation where fiscal policy is ineffective
#16
What is the 'natural rate of unemployment'?
The unemployment rate at which inflation is stable
The unemployment rate at which the economy is at full employment
The unemployment rate at which there is no frictional unemployment
The unemployment rate at which there is no cyclical unemployment
#17
According to the law of diminishing returns, what happens when one input is increased while other inputs are held constant?
Total output increases at an increasing rate.
Total output increases at a decreasing rate.
Total output decreases at an increasing rate.
Total output decreases at a decreasing rate.