#1
In economics, what does the term 'GDP' stand for?
Gross Domestic Product
ExplanationTotal value of goods and services produced in a country.
#2
What is the formula for calculating total revenue?
Price × Quantity Demanded
ExplanationTotal income from sales of a product.
#3
Which of the following is NOT a factor of production?
Money
ExplanationMedium of exchange rather than a factor of production.
#4
Which of the following is NOT a characteristic of a perfectly competitive market?
Barrier to entry
ExplanationLack of barriers allows for many competitors.
#5
What is the 'law of diminishing marginal utility'?
As consumption of a product increases, its marginal utility decreases
ExplanationEach unit consumed adds less satisfaction.
#6
Which of the following is a characteristic of monopolistic competition?
Easy entry and exit of firms
ExplanationFirms can enter and leave the market freely.
#7
Which of the following is an example of a positive externality?
Education benefits spilling over to society
ExplanationAdditional societal gains beyond the direct participants.
#8
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded divided by percentage change in price
ExplanationMeasures responsiveness of quantity demanded to price changes.
#9
In economics, what is the 'Phillips curve' used to describe?
The relationship between inflation and unemployment
ExplanationTrade-off relationship between inflation and unemployment.