#1
Which economic system is characterized by the private ownership of resources and the use of markets to coordinate economic activity?
Socialism
Communism
Capitalism
Feudalism
#2
Which of the following is a characteristic feature of a mixed economy?
Complete government control of production
No government intervention
Co-existence of private and public sectors
Absolute freedom in consumption choices only
#3
Which of the following terms refers to the total value of all final goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
Gross National Product (GNP)
Net National Product (NNP)
Personal Income (PI)
#4
Which of the following is not a function of money?
Medium of exchange
Store of value
Unit of account
Guarantee of future wealth
#5
What concept does the 'invisible hand' refer to in economics?
Government regulation of markets
The self-regulating nature of the marketplace
Central planning by authorities
The role of technology in economic growth
#6
In the context of labor relations, what does the term 'collective bargaining' refer to?
The process by which workers compete for higher wages
The negotiation of wages and other conditions of employment by an organized body of employees
Government intervention in labor disputes
The collective investment of workers' savings in the stock market
#7
What economic concept is illustrated by the Lorenz Curve?
Elasticity of demand
Income distribution
Price stability
Market equilibrium
#8
Which of the following best defines 'structural unemployment'?
Unemployment that occurs due to the seasonal nature of jobs
Unemployment that happens when there is a mismatch between the skills workers have and the skills needed by employers
Unemployment caused by economic downturns
Short-term unemployment that occurs during job search
#9
What principle does the Gini Coefficient measure?
Economic growth
Inflation rate
Income inequality
Unemployment rate
#10
The concept of 'comparative advantage' suggests that countries should
Produce everything they consume to be self-sufficient
Specialize in the production of goods for which they have a lower opportunity cost
Import more than they export to boost domestic consumption
Focus solely on the production of high-tech goods
#11
The 'right to work' laws in the United States aim to
Ensure equal employment opportunity for all citizens
Prohibit union security agreements between companies and labor unions
Guarantee minimum wage for all workers
Protect workers' rights to strike and engage in collective bargaining
#12
What is the primary focus of Keynesian economic theory?
Reducing government intervention in the economy
The role of supply and demand in determining prices
The use of fiscal and monetary policies to manage economic fluctuations
Promoting free markets and minimal regulation
#13
Which of the following best describes 'monopsony' in labor markets?
A market with a single employer and many workers
A market with many employers and a single worker
A perfectly competitive labor market
A market with unionized labor
#14
In economics, 'deadweight loss' often refers to
The cost of unemployment to society
Efficiency lost due to market distortion, such as taxes or subsidies
The overhead cost of maintaining government institutions
Losses incurred from investing in non-profitable industries