#1
What is the law of demand in economics?
As price increases, quantity demanded decreases
As price increases, quantity demanded increases
As price decreases, quantity demanded decreases
As price decreases, quantity demanded increases
#2
What is the concept of opportunity cost?
The cost of an opportunity
The highest-valued alternative that must be sacrificed to engage in an activity
The cost of an activity
The benefit of an activity
#3
In economics, what does GDP stand for?
Gross Domestic Product
Gross Development Percentage
Government Development Policy
Gross Demand Proportion
#4
What does the term 'inflation' refer to in economics?
A decrease in the general price level of goods and services
A sustained increase in the general price level of goods and services
A decrease in the supply of money in the economy
A decrease in the quantity of goods and services produced
#5
What is the formula to calculate the unemployment rate?
(Number of unemployed / Labor force) × 100
(Number of employed / Labor force) × 100
(Number of employed / Total population) × 100
(Number of unemployed / Total population) × 100
#6
What is the concept of comparative advantage in international trade?
A country can produce a good at a lower opportunity cost than another country
A country can produce a good at a higher opportunity cost than another country
A country can produce all goods more efficiently than another country
A country's absolute advantage in producing all goods
#7
What is the main function of a central bank?
To regulate government spending
To control interest rates
To manage taxation policies
To oversee stock market operations
#8
What is the law of supply in economics?
As price decreases, quantity supplied decreases
As price increases, quantity supplied decreases
As price decreases, quantity supplied increases
As price increases, quantity supplied increases
#9
Which of the following is a characteristic of oligopoly market structure?
Many buyers and sellers
Homogeneous products
A few dominant firms
No barriers to entry
#10
Which of the following is not a characteristic of a perfectly competitive market?
Homogeneous products
Many buyers and sellers
Barriers to entry
Perfect information
#11
What is the law of diminishing marginal utility?
As consumption of a good increases, its marginal utility increases
As consumption of a good increases, its marginal utility decreases
As consumption of a good decreases, its marginal utility decreases
As consumption of a good decreases, its marginal utility increases
#12
Which of the following is a characteristic of monopolistic competition?
Many buyers and sellers
Identical products
Significant barriers to entry
Product differentiation
#13
Which of the following is a characteristic of a command economy?
Private ownership of resources
Decentralized decision-making
Government control over resource allocation
Competition among firms
#14
What is fiscal policy?
Government policy related to the management of money supply
Government policy related to taxation and spending
Government policy related to international trade
Government policy related to interest rates
#15
Which of the following is an example of a regressive tax?
Income tax
Sales tax
Property tax
Corporate tax
#16
What is the 'invisible hand' concept in economics?
Government intervention in the economy
Market forces guiding individuals' self-interest to promote the social interest
Taxation policies
Centralized economic planning
#17
What is the equation of the production possibility frontier (PPF) curve?
Y = f(X)
Y = 1 / f(X)
Y = X / f(X)
Y = X
#18
What does the term 'ceteris paribus' mean in economics?
All other things being equal
Only some things being equal
All things being variable
Only one thing being equal
#19
What is the concept of elasticity of demand?
The measure of responsiveness of quantity demanded to a change in price
The measure of total demand for a product
The measure of consumer preferences
The measure of income distribution
#20
What is the difference between microeconomics and macroeconomics?
Microeconomics studies individual markets, while macroeconomics studies the economy as a whole
Microeconomics focuses on government policies, while macroeconomics focuses on consumer behavior
Microeconomics studies the economy as a whole, while macroeconomics focuses on individual markets
Microeconomics studies international trade, while macroeconomics studies domestic trade
#21
What is the formula for price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
#22
Which of the following is a tool of monetary policy used by central banks?
Fiscal deficit
Interest rates
Government spending
Taxation
#23
What does the term 'monetary policy' refer to?
Government policy related to taxation and spending
Government policy related to interest rates and money supply
Government policy related to international trade
Government policy related to income distribution
#24
Which of the following is a tool used in fiscal policy?
Open market operations
Reserve requirement
Government spending
Discount rate
#25
What is the concept of price ceiling in economics?
A legal minimum price for a good or service
A legal maximum price for a good or service
A price set above the equilibrium price
A price set below the equilibrium price