#1
Which of the following is a fundamental economic concept referring to the situation where resources are limited?
Scarcity
Abundance
Surplus
Efficiency
#2
Which economic principle suggests that as the price of a good increases, the quantity demanded by consumers decreases, and vice versa, assuming all other factors remain constant?
The law of diminishing returns
The law of demand
The law of supply
The law of equilibrium
#3
In macroeconomics, what does GDP stand for?
Gross Domestic Production
Gross Demographic Profile
Gross Domestic Product
General Demand Protocol
#4
What is the term used to describe the total value of all goods and services produced within a country's borders in a specific time period?
Gross National Product (GNP)
Net National Product (NNP)
Gross Domestic Product (GDP)
Net Domestic Product (NDP)
#5
What does the term 'inflation' refer to in economics?
A sustained decrease in the general price level of goods and services
A situation where the economy is operating below its potential output
A sustained increase in the general price level of goods and services
A situation where the economy is experiencing rapid economic growth
#6
Which of the following is NOT a component of aggregate demand (AD) in macroeconomics?
Consumption
Investment
Government spending
Imports
#7
What is the term for a situation where there is a sustained increase in the general price level of goods and services over time?
Recession
Deflation
Stagflation
Inflation
#8
What is the primary role of government intervention in a market economy?
To ensure monopolies dominate the market
To regulate prices and control production
To provide public goods and correct market failures
To maximize profits for private businesses
#9
Which economic policy aims to stimulate economic growth by increasing the money supply and reducing interest rates?
Fiscal policy
Monetary policy
Supply-side policy
Trade policy
#10
According to the concept of opportunity cost, what is the cost of an action?
The monetary cost of the action
The value of the next best alternative foregone
The total expenses incurred
The total benefits gained
#11
Which of the following is a characteristic of a perfectly competitive market?
Many sellers and few buyers
Few sellers and many buyers
Homogeneous products and barriers to entry
Differentiated products and government intervention
#12
What is the economic term for the total revenue minus the explicit (monetary) cost of producing goods or services?
Profit
Loss
Cost-benefit
Opportunity cost
#13
Which of the following is NOT considered a factor of production?
#14
In economics, what is the term for a situation where one party in a transaction has more information than the other party, leading to an imbalance in power?
Monopoly
Asymmetric information
Oligopoly
Perfect competition
#15
What does the 'Laffer Curve' illustrate in economics?
The relationship between the unemployment rate and inflation
The relationship between government spending and tax revenue
The relationship between interest rates and investment
The relationship between tax rates and tax revenue