#1
Which economic system is characterized by the private ownership of resources and the use of markets to coordinate economic activity?
Capitalism
ExplanationPrivate ownership and market coordination define capitalism.
#2
Which of the following is a characteristic feature of a mixed economy?
Co-existence of private and public sectors
ExplanationA mixed economy combines both private and public ownership of resources.
#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)
ExplanationGDP measures the total value of goods and services produced within a country's borders.
#4
Which of the following is not a function of money?
Guarantee of future wealth
ExplanationMoney doesn't guarantee future wealth; it serves as a medium of exchange, unit of account, and store of value.
#5
What concept does the 'invisible hand' refer to in economics?
The self-regulating nature of the marketplace
ExplanationThe invisible hand represents the market's self-regulating force without central coordination.
#6
In the context of labor relations, what does the term 'collective bargaining' refer to?
The negotiation of wages and other conditions of employment by an organized body of employees
ExplanationCollective bargaining involves organized employee groups negotiating employment terms.
#7
What economic concept is illustrated by the Lorenz Curve?
Income distribution
ExplanationThe Lorenz Curve depicts the distribution of income within a population.
#8
Which of the following best defines 'structural unemployment'?
Unemployment that happens when there is a mismatch between the skills workers have and the skills needed by employers
ExplanationStructural unemployment results from a skills mismatch between workers and job requirements.
#9
What principle does the Gini Coefficient measure?
Income inequality
ExplanationThe Gini Coefficient quantifies the inequality of income distribution in a society.
#10
The concept of 'comparative advantage' suggests that countries should
Specialize in the production of goods for which they have a lower opportunity cost
ExplanationCountries should focus on goods with lower opportunity costs for efficiency.
#11
The 'right to work' laws in the United States aim to
Prohibit union security agreements between companies and labor unions
ExplanationRight-to-work laws prevent mandatory union membership as a condition of employment.
#12
What is the primary focus of Keynesian economic theory?
The use of fiscal and monetary policies to manage economic fluctuations
ExplanationKeynesian theory advocates government intervention to stabilize the economy.
#13
Which of the following best describes 'monopsony' in labor markets?
A market with a single employer and many workers
ExplanationMonopsony is a labor market with a single buyer (employer) and multiple sellers (workers).
#14
In economics, 'deadweight loss' often refers to
Efficiency lost due to market distortion, such as taxes or subsidies
ExplanationDeadweight loss is efficiency reduction caused by market interventions like taxes or subsidies.