#1
What does GDP stand for in economics?
Gross Domestic Product
ExplanationTotal value of all goods and services produced within a country's borders.
#2
Which of the following is not a type of economic system?
Democracy
ExplanationPolitical system, not an economic system.
#3
What is the law of demand in economics?
As the price of a good increases, the quantity demanded decreases
ExplanationInverse relationship between price and quantity demanded.
#4
Which of the following is a measure of central tendency in statistics?
Mean
ExplanationAverage value of a set of numbers.
#5
What is the 'invisible hand' concept in economics associated with?
Adam Smith
ExplanationTheory by Adam Smith suggesting self-interest and competition guide markets.
#6
What does the term 'inflation' refer to in economics?
Increase in the general price level of goods and services
ExplanationRise in the overall cost of goods and services.
#7
What is the formula for calculating compound interest?
P = A(1 + r/n)^nt
ExplanationFormula for computing interest on an initial principal, with interest compounding over time.
#8
What does the term 'opportunity cost' represent in economics?
The value of the next best alternative foregone
ExplanationCost of forgoing the next best alternative when making a decision.
#9
What is the main purpose of fiscal policy?
To influence the economy through government spending and taxation
ExplanationGovernment's use of spending and taxation to influence economic activity.
#10
Which of the following is not a function of the central bank in a country's economy?
Directing foreign policy
ExplanationCentral banks focus on monetary policy, not foreign policy.
#11
Which of the following is a characteristic of a perfectly competitive market?
Identical products
ExplanationAll firms produce identical goods or services.
#12
What is the Laffer Curve used to illustrate?
The relationship between tax rates and tax revenue
ExplanationDemonstrates the relationship between tax rates and tax revenue.
#13
What does the term 'monetary policy' refer to in economics?
Central bank policies that influence the money supply and interest rates
ExplanationTools used by central banks to control the money supply and interest rates.
#14
Which of the following is a characteristic of a monopolistic competition market structure?
Differentiated products
ExplanationProducts are differentiated, allowing firms to have some control over prices.