Economic Statements and Approaches Quiz

Market economies emphasize private ownership of resources for allocation.

Neoclassical economics highlights individual choices and incentives as key factors.

The Tragedy of the Commons refers to the overuse and depletion of resources held in common.

GDP measures the total value of all final goods and services produced within a country.

A monopoly occurs when a single seller dominates the market for a product or service.

Microeconomics analyzes individual markets, entities, and their interactions.

Technological progress is central to classical economics' view on economic growth.

GDP is calculated by adding consumption, investment, government spending, and net exports.

CPI is a commonly used measure of inflation, tracking changes in consumer prices.

Marginal cost is the additional cost incurred from producing one more unit of a good or service.

Keynesian economics focuses on stimulating demand during downturns via government intervention.

Quantitative easing involves the central bank purchasing financial assets to increase money supply.

According to the Law of Demand, quantity demanded increases as price decreases, ceteris paribus.

The primary goal of monetary policy is to maintain price stability and control inflation.

Socialism involves collective or government ownership of means of production.