#1
In economics, what does the term 'GDP' stand for?
Gross Domestic Product
Government Development Program
Global Demand Projection
General Development Protocol
#2
What is the formula for calculating total revenue?
Price × Quantity Demanded
Price × Quantity Supplied
Quantity Demanded ÷ Price
Quantity Supplied ÷ Price
#3
Which of the following is NOT a factor of production?
#4
What is the 'law of demand'?
As price increases, quantity demanded decreases
As price increases, quantity demanded increases
As income increases, quantity demanded decreases
As income increases, quantity demanded increases
#5
Which of the following is NOT a characteristic of a perfectly competitive market?
Many buyers and sellers
Homogeneous products
Barrier to entry
Perfect information
#6
What is the 'law of diminishing marginal utility'?
As consumption of a product increases, its marginal utility decreases
As consumption of a product increases, its price decreases
As consumption of a product increases, its demand increases
As consumption of a product increases, its total utility increases
#7
Which of the following is a characteristic of monopolistic competition?
One seller dominates the market
Homogeneous products
Easy entry and exit of firms
Perfect information
#8
What is the primary function of the Federal Reserve System in the United States?
Regulating international trade
Fiscal policy implementation
Monetary policy regulation
Enforcing antitrust laws
#9
Which of the following is an example of a regressive tax?
Progressive income tax
Sales tax
Corporate income tax
Property tax
#10
What is the economic term for a situation where one party has more information than the other party in a transaction?
Market equilibrium
Imperfect competition
Monopoly power
Asymmetric information
#11
Which of the following is NOT a component of the aggregate expenditure model?
Consumption
Investment
Government spending
Trade balance
#12
What is the economic term for a situation where the market fails to allocate resources efficiently?
Market equilibrium
Monopolistic competition
Market failure
Perfect competition
#13
Which of the following is NOT a determinant of demand?
Income
Price of substitute goods
Price of complementary goods
Number of sellers in the market
#14
Which of the following is an example of a public good?
Private beach resort
Electricity
Designer handbag
Gourmet restaurant
#15
What is the concept of 'comparative advantage' in international trade?
When a country can produce a good at a lower opportunity cost than another country
When a country can produce all goods more efficiently than another country
When a country has absolute control over the production of a certain good
When a country can produce a good at a higher opportunity cost than another country
#16
Which of the following is an example of a positive externality?
Pollution from a factory
Education benefits spilling over to society
Traffic congestion
Water scarcity
#17
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded divided by percentage change in income
Percentage change in quantity demanded divided by percentage change in price
Total revenue divided by quantity demanded
Price divided by quantity demanded
#18
In economics, what is the 'Phillips curve' used to describe?
The relationship between inflation and unemployment
The relationship between supply and demand
The impact of taxes on consumer behavior
The effect of government spending on GDP
#19
What is the formula for calculating average variable cost?
Total variable cost / Quantity produced
Total variable cost / Total cost
Total cost / Quantity produced
Total revenue / Quantity produced