#1
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and many sellers
High barriers to entry
A single seller dominating the market
Control over prices by individual sellers
#2
What does GDP stand for in economics?
Gross Domestic Product
General Distribution Principle
Government Development Program
Gross Domestic Progress
#3
What is the opportunity cost of a decision?
The total cost incurred
The cost of the next best alternative foregone
The monetary cost only
The average cost
#4
Which of the following is not a factor of production in economics?
#5
What is the formula to calculate GDP (Gross Domestic Product)?
Consumption + Investment + Government Spending + (Exports - Imports)
Consumption + Investment + Government Spending + Exports + Imports
Consumption + Investment + Government Spending - (Exports - Imports)
Consumption + Investment + Government Spending - Exports + Imports
#6
Which of the following is an example of a regressive tax?
Income Tax
Sales Tax
Property Tax
Corporate Tax
#7
Which of the following is a characteristic of a monopoly market?
Many sellers offering differentiated products
Price taker behavior
A single seller dominating the market
Perfect information availability
#8
What does the law of diminishing marginal utility state?
As the price of a good increases, the quantity demanded increases
As consumption of a product increases, the marginal utility decreases
As income rises, the demand for luxury goods decreases
As the price of a substitute good decreases, the demand for the original good decreases
#9
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Total change in quantity demanded / Total change in price
Total change in price / Total change in quantity demanded
#10
What is fiscal policy?
Policy related to the management of money supply
Policy related to taxation and government spending
Policy aimed at controlling inflation
Policy related to international trade
#11
What is the term used to describe a situation where the quantity supplied equals the quantity demanded?
Equilibrium
Surplus
Shortage
Market failure
#12
Which of the following is a characteristic of oligopoly markets?
Many sellers offering identical products
A single seller dominating the market
Few large firms dominating the market
No barriers to entry
#13
In economics, what does 'ceteris paribus' mean?
All else being equal
Supply exceeds demand
Market equilibrium
Demand exceeds supply
#14
What is the Phillips curve in economics?
A curve representing the relationship between inflation and unemployment
A curve representing the relationship between GDP and inflation
A curve representing the relationship between interest rates and investment
A curve representing the relationship between price and quantity demanded
#15
What is the formula to calculate 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
#16
What is the concept of 'moral hazard' in economics?
The tendency for people to change their behavior when the consequences of their actions are insured against
The tendency for individuals to invest too conservatively
The idea that individuals will always act in their own self-interest
The tendency for individuals to underestimate risk
#17
What is the main assumption of the classical economic theory?
Consumers always act rationally
Markets are always in equilibrium
Government intervention is necessary for market efficiency
Prices and wages are flexible