#1
Which economic system relies on market forces to determine prices and allocate resources?
Capitalism
Socialism
Communism
Mixed economy
#2
In a command economy, who typically makes decisions about resource allocation?
Government authorities
Market forces
Consumers
Private businesses
#3
In a laissez-faire economic system, what is the government's role?
Extensive intervention and regulation
Minimal intervention, allowing market forces to operate freely
Complete control of all economic activities
Central planning of production and distribution
#4
Which economic concept refers to the total market value of all goods and services produced within a country in a specific time period?
Net worth
Trade balance
Gross Domestic Product (GDP)
Fiscal deficit
#5
Which economic system is characterized by collective or government ownership of the means of production and distribution of goods and services?
Capitalism
Socialism
Communism
Mixed economy
#6
What is a characteristic of a mixed economy?
Government owns all means of production
Market forces have no influence
Combination of private and public ownership
Decentralized decision-making
#7
In economic terms, what does GDP stand for?
General Demand Projection
Gross Domestic Product
Government Development Plan
Global Demand Index
#8
What is the primary goal of monetary policy?
Stabilize employment
Control inflation and interest rates
Manage government spending
Regulate international trade
#9
Which economic system emphasizes collective ownership and control of the means of production?
Capitalism
Socialism
Communism
Mixed economy
#10
What is the main purpose of the World Trade Organization (WTO)?
Control global financial markets
Promote international trade and resolve trade disputes
Provide foreign aid to developing countries
Regulate domestic economic policies
#11
What role does fiscal policy play in the economy?
Controlling the money supply
Regulating interest rates
Managing government spending and taxation
Influencing consumer behavior
#12
What is the Tragedy of the Commons in the context of economics?
Overuse and depletion of shared resources
Market failure due to excessive regulation
Government intervention in private markets
Unequal distribution of wealth
#13
Which economic indicator is used to measure the average prices of a basket of goods and services in an economy?
GDP
Unemployment rate
Consumer Price Index (CPI)
Exchange rate
#14
What is the difference between absolute advantage and comparative advantage in international trade?
Absolute advantage focuses on efficiency, while comparative advantage considers opportunity cost
Absolute advantage only applies to developed countries
Comparative advantage emphasizes technological superiority
There is no difference; the terms are interchangeable
#15
In economic terms, what does the term 'elasticity' refer to?
The responsiveness of quantity demanded to a change in price
The stability of a currency
The overall level of government spending
The ability of a firm to expand production