#1
2. Which economic principle suggests that individuals acting in their own self-interest unintentionally contribute to the overall economic well-being of society?
Laissez-faire
Invisible Hand
Socialism
Communism
#2
6. What is the term for the total value of all goods and services produced within a country's borders in a specific time period?
Trade balance
Gross Domestic Product (GDP)
Inflation rate
Consumer Price Index (CPI)
#3
13. Which economic concept refers to the situation where the quantity demanded for a good equals the quantity supplied, resulting in a stable price?
Equilibrium
Monopoly
Elasticity
Surplus
#4
18. In the context of capitalism, what is the role of the government in enforcing property rights?
To abolish property rights
To minimize property ownership
To protect and enforce property rights
To regulate property transactions
#5
23. What is the economic term for a situation where a good or service is both excludable and rivalrous?
Public good
Common resource
Private good
Club good
#6
1. According to Adam Smith's concept of the 'Invisible Hand,' what is the role of self-interest in a capitalist economy?
It leads to government intervention
It hinders economic growth
It promotes overall economic well-being
It encourages monopolies
#7
3. In capitalism, what is the primary mechanism for allocating resources and determining prices?
Central planning by the government
Supply and demand in the market
Barter system
Random allocation
#8
7. In capitalism, what is the significance of the price mechanism?
It determines the wages of workers
It regulates the stock market
It allocates resources based on supply and demand
It controls interest rates
#9
8. According to the concept of 'utility' in economics, what does it refer to?
The total wealth of a nation
The satisfaction or pleasure derived from consuming goods and services
The amount of money in circulation
The overall market demand
#10
11. What economic term describes the situation where one person's consumption of a good or service does not reduce its availability for others?
Excludability
Externality
Rivalry
Market failure
#11
12. According to the concept of comparative advantage, why do countries engage in international trade?
To achieve self-sufficiency
To exploit other nations
To benefit from differences in opportunity costs
To promote isolationism
#12
16. According to the law of diminishing marginal utility, what does it suggest about the consumption of goods and services?
Consumers always experience increasing satisfaction
Consumers will consume more as prices increase
The additional satisfaction decreases as more units are consumed
Consumers prioritize luxury goods over necessities
#13
4. According to classical economic theory, what is the role of government in a capitalist system?
To control all aspects of the economy
To minimize its intervention
To redistribute wealth equally
To regulate individual businesses
#14
5. Which economist is known for his theory of 'creative destruction' as an essential part of capitalist development?
Milton Friedman
John Maynard Keynes
Joseph Schumpeter
Karl Marx
#15
9. What is the primary goal of profit-maximizing firms in a capitalist system?
Equal distribution of wealth
Minimizing competition
Maximizing shareholder wealth
Providing social services
#16
10. In the context of capitalism, what is the role of entrepreneurship?
To promote government intervention
To minimize competition
To innovate and take risks in pursuit of profit
To control the price mechanism
#17
14. What is the primary function of the Federal Reserve in the United States in the context of capitalism?
Regulating international trade
Controlling fiscal policy
Managing monetary policy and the money supply
Setting tax rates
#18
15. In capitalism, what role does the concept of 'elasticity' play in determining the responsiveness of demand to price changes?
It measures the overall consumer satisfaction
It indicates the degree of market competition
It assesses the impact of income inequality
It measures the sensitivity of quantity demanded to price changes
#19
19. What is the economic term for the situation where a market fails to allocate resources efficiently?
Equilibrium
Monopoly
Market failure
Price ceiling