Economic Statements and Approaches Quiz

Test your knowledge with 15 questions on market economy, Keynesian economics, GDP calculation, inflation, and more in this macroeconomics quiz.

#1

Which of the following is a characteristic of a market economy?

Centralized planning by the government
Private ownership of resources
Equal distribution of wealth
Limited role of the private sector
#2

Which economic approach emphasizes the importance of individual choices and incentives?

Keynesian economics
Behavioral economics
Neoclassical economics
Marxian economics
#3

What is the Tragedy of the Commons in economic terms?

Overproduction leading to market saturation
Excessive government intervention in markets
Overuse and depletion of shared resources
Failure of demand in a free-market system
#4

Which economic concept is defined as the total value of all final goods and services produced within a country in a specific time period?

Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
National Income (NI)
#5

What is the term for a situation in which a single seller dominates the entire market for a particular product or service?

Oligopoly
Monopoly
Perfect competition
Monopsony
#6

What is the primary focus of microeconomics?

The economy as a whole
Individual markets and entities
Government policies
Global economic trends
#7

According to the classical economic approach, what is the key driver of economic growth?

Government intervention
Consumer spending
Technological progress
Labor unions
#8

What is the formula for calculating Gross Domestic Product (GDP)?

Consumption + Investment + Government Spending - Net Exports
Consumption - Investment + Government Spending + Net Exports
Consumption + Investment - Government Spending + Net Exports
Consumption + Investment + Government Spending + Net Exports
#9

Which of the following is a measure of inflation?

Consumer Price Index (CPI)
Gini coefficient
Balance of trade
Human Development Index (HDI)
#10

Which economic concept refers to the additional cost of producing one more unit of a good or service?

Average cost
Opportunity cost
Marginal cost
Fixed cost
#11

What is the main focus of Keynesian economics during economic downturns?

Decreasing government spending
Increasing taxes
Stimulating demand through government intervention
Promoting free-market policies
#12

In monetary policy, what does the term 'quantitative easing' refer to?

Increasing interest rates
Reducing the money supply
Buying financial assets by the central bank
Encouraging private investment
#13

According to the Law of Demand, what happens to quantity demanded when the price of a good decreases?

Increases
Decreases
Remains unchanged
Varies unpredictably
#14

What is the primary goal of a central bank's monetary policy?

Maximizing government revenue
Stabilizing prices and controlling inflation
Encouraging high-interest rates
Promoting international trade
#15

Which economic system is characterized by collective or government ownership of the means of production?

Capitalism
Socialism
Communism
Mixed economy

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