Economic Transformations Quiz

Private ownership of production and market competition define capitalism.

Money is not considered a factor of production.

GDP represents the total market value of all final goods and services produced within a country in a given period of time.

Government control over resource allocation is a characteristic of a command economy.

A sustained increase in the general price level is called inflation.

GDP stands for Gross Domestic Product.

Adam Smith is associated with the concept of the 'invisible hand'.

Adam Smith is often referred to as the 'Father of Economics'.

Opportunity cost represents the cost of a good or service in terms of an alternative given up.

David Ricardo developed the theory of comparative advantage.

Continuous rise in the price of goods is termed as inflation.

Keynesian economics suggests increasing demand to boost economic growth during recessions.

Technological progress is primarily responsible for long-term economic growth according to the Solow Growth Model.

Comparative advantage refers to the ability to produce at a lower opportunity cost than competitors.

The loanable funds model suggests that investment level is determined by savings and interest rates.