#1
In economics, what is the law of demand?
As the price of a good decreases, the quantity demanded increases.
ExplanationInverse relationship between price and quantity demanded.
#2
What does 'Ceteris Paribus' mean in economics?
All else being equal
ExplanationIsolating one variable while keeping others constant for analysis.
#3
Which of the following is NOT a characteristic of perfect competition?
Limited information
ExplanationPerfect competition assumes perfect information.
#4
What is the 'Marginal Revenue' in economics?
The revenue from selling one more unit
ExplanationAdditional revenue generated by selling an extra unit.
#5
What is a 'Monopoly' in economics?
A market structure with only one seller and many buyers
ExplanationSingle seller dominating the market.
#6
Which of the following is NOT a barrier to entry in a monopoly market?
Product differentiation
ExplanationProduct variety is not a barrier in a monopoly.
#7
What is 'Price Discrimination' in economics?
Charging different prices to different customers for the same product
ExplanationVarying prices based on customer characteristics.
#8
Which of the following statements best describes the concept of 'Elasticity of Supply'?
It measures the responsiveness of quantity supplied to a change in price.
ExplanationHow quantity supplied changes with a change in price.
#9
What does 'Profit Maximization' mean for a firm in economics?
Maximizing the difference between total revenue and total cost
ExplanationSeeking the highest profit by optimizing revenue and cost.
#10
What is 'Oligopoly' in economics?
A market structure with only a few sellers, each offering a similar or identical product
ExplanationA market dominated by a small number of sellers.
#11
What is 'Deadweight Loss'?
The loss in economic surplus resulting from the misallocation of resources
ExplanationLoss due to inefficient allocation of resources.
#12
Which of the following is a characteristic of a monopolistically competitive market?
Product differentiation
ExplanationDifferentiated products in a competitive market.