#1
Which of the following is a characteristic of perfect competition?
A large number of buyers and sellers
Product differentiation
Control over market price by a single firm
Barriers to entry
#2
What does GDP stand for?
Gross Domestic Profit
Government Development Program
Gross Domestic Product
General Development Protocol
#3
Which economic concept refers to the situation where the quantity supplied equals the quantity demanded?
Equilibrium
Elasticity
Surplus
Shortage
#4
Which of the following is a measure of income inequality?
Consumer Price Index (CPI)
Gini coefficient
Gross Domestic Product (GDP)
Unemployment rate
#5
What is the law of supply?
As the price decreases, quantity supplied increases
As the price increases, quantity supplied decreases
As the price decreases, quantity supplied decreases
As the price increases, quantity supplied increases
#6
Which of the following is a feature of a monopoly?
Price taker
Many substitutes for the product
Single seller in the market
Perfect information available to all market participants
#7
What is the law of demand?
As the price increases, quantity demanded increases
As the price decreases, quantity demanded decreases
As the price increases, quantity demanded decreases
As the price decreases, quantity demanded increases
#8
What is the opportunity cost?
The cost of production inputs
The benefit of the best alternative foregone
The total cost of production
The price of the product in the market
#9
What does the term 'inflation' refer to in economics?
A decrease in the general level of prices
An increase in the purchasing power of money
A sustained increase in the general price level of goods and services
A decrease in the money supply
#10
What is the formula for calculating price elasticity of demand?
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
#11
Which economic concept refers to the maximum amount of a good that a seller is willing to sell at a given price?
Supply
Demand
Equilibrium
Utility
#12
What is the role of the Federal Reserve in the United States?
Fiscal policy implementation
Regulating international trade
Monetary policy implementation
Tax collection
#13
What does the term 'comparative advantage' mean?
The ability of a nation to produce a good at a lower opportunity cost than other nations
The ability of a nation to produce a good more efficiently than other nations
The equal distribution of resources among nations
The ability of a nation to produce all goods more efficiently than other nations
#14
Which economic concept suggests that individuals, firms, and nations should specialize in the production of goods in which they have the lowest opportunity cost?
Marginal cost
Comparative advantage
Absolute advantage
Diminishing returns
#15
What is the role of the World Bank?
Providing loans to developing countries for infrastructure projects
Regulating global financial markets
Setting international trade policies
Providing humanitarian aid to disaster-affected regions