#1
Which era marked the beginning of modern economic transformations?
Industrial Revolution
ExplanationThe period characterized by significant advancements in industry, technology, and economic changes during the late 18th and early 19th centuries.
#2
Who is considered the father of modern economics?
Adam Smith
ExplanationA Scottish economist and philosopher known for his influential work 'The Wealth of Nations' and advocacy for free-market capitalism.
#3
Which economic system emphasizes private ownership and free market forces?
Capitalism
ExplanationAn economic system where private individuals or businesses own the means of production, and market forces determine prices and allocation of resources.
#4
What major economic event is often associated with the year 1929?
Great Depression
ExplanationA severe worldwide economic downturn marked by stock market crashes, widespread unemployment, and economic hardship.
#5
Which country experienced the 'Meiji Restoration' leading to rapid modernization and industrialization in the late 19th century?
Japan
ExplanationA period in Japanese history where political and social reforms led to rapid modernization, industrialization, and economic growth.
#6
What economic theory advocates for government intervention to stabilize the economy through monetary and fiscal policies?
Keynesianism
ExplanationAn economic theory named after John Maynard Keynes, emphasizing government intervention to manage economic fluctuations and promote stability.
#7
Which agreement established the framework for international trade and reduced trade barriers?
General Agreement on Tariffs and Trade (GATT)
ExplanationAn international treaty aimed at promoting global trade by reducing tariffs and trade barriers among member countries.
#8
Which economic theory argues that government should have minimal intervention in economic affairs, leaving markets to operate freely?
Neoliberalism
ExplanationAn economic ideology advocating for limited government intervention, free markets, and individual liberties to promote economic efficiency.
#9
Who proposed the theory of comparative advantage?
David Ricardo
ExplanationA British economist known for his theory explaining the benefits of international trade based on comparative advantage.
#10
Who coined the term 'creative destruction' to describe the process of innovation replacing outdated economic structures?
Joseph Schumpeter
ExplanationAn Austrian economist known for his concept of 'creative destruction,' highlighting the role of innovation in transforming and revitalizing economies.
#11
Which economic concept measures the total market value of all final goods and services produced within a country in a given period?
Gross Domestic Product (GDP)
ExplanationA key economic indicator that quantifies the total value of a country's goods and services, reflecting its economic output.
#12
Who is known for developing the theory of the business cycle, which describes the recurring phases of economic growth and contraction?
John Maynard Keynes
ExplanationA prominent economist whose work focused on explaining economic cycles and advocating for government intervention to manage economic fluctuations.
#13
What term describes a situation where one party has a more complete understanding of a transaction than the other, leading to unequal outcomes?
Asymmetric information
ExplanationA concept in economics where information imbalances between parties in a transaction result in unequal outcomes and potential market inefficiencies.
#14
Which economic concept refers to the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other entities?
Comparative advantage
ExplanationThe principle that entities should specialize in producing goods or services where they have a comparative advantage, leading to overall economic efficiency.