#1
What is the primary function of a labor union?
To negotiate wages and working conditions on behalf of workers
ExplanationLabor unions primarily negotiate wages and working conditions for workers.
#2
What is the concept of 'opportunity cost'?
The value of the next best alternative forgone when a decision is made
ExplanationOpportunity cost is the value of the next best alternative forgone when making a decision.
#3
Which of the following is NOT a characteristic of perfect competition?
Barriers to entry and exit
ExplanationPerfect competition does not have barriers to entry and exit.
#4
What is the formula to calculate the unemployment rate?
Number of unemployed workers / Total labor force
ExplanationUnemployment rate = (Number of unemployed workers / Total labor force).
#5
Which of the following is a fiscal policy tool?
Government spending
ExplanationGovernment spending is a fiscal policy tool.
#6
Which of the following is a characteristic of a command economy?
Central planning by the government
ExplanationIn a command economy, the government centrally plans economic activities.
#7
What is the term used to describe the maximum amount of a good that consumers are willing and able to purchase at a given price?
Quantity demanded
ExplanationQuantity demanded is the maximum amount consumers are willing to buy at a given price.
#8
What is the 'Phillips Curve' relationship in economics?
Inflation and unemployment have an inverse relationship
ExplanationThe Phillips Curve shows an inverse relationship between inflation and unemployment.
#9
What is the concept of 'income elasticity of demand'?
The responsiveness of quantity demanded to changes in consumer income
ExplanationIncome elasticity of demand measures the responsiveness of quantity demanded to changes in consumer income.