#1
Which of the following is a characteristic of a market economy?
Centralized planning by the government
Private ownership of resources
Equal distribution of wealth
Limited consumer choices
#2
In a command economy, who typically makes decisions regarding resource allocation?
Government authorities
Business owners
Consumers
Labor unions
#3
What is the primary goal of a business in a market economy?
Maximizing government intervention
Maximizing consumer satisfaction
Minimizing competition
Minimizing profits
#4
Which economic concept refers to the total value of goods and services produced within a country's borders in a specific time period?
Inflation rate
Gross domestic product (GDP)
Consumer price index (CPI)
Unemployment rate
#5
What is the main function of a central bank in an economy?
To regulate interest rates
To provide loans to consumers
To manage government expenditures
To distribute social welfare benefits
#6
Which of the following is an example of a regressive tax?
Sales tax
Progressive tax
Income tax
Property tax
#7
Which economic system relies heavily on tradition and customs?
Market economy
Command economy
Mixed economy
Traditional economy
#8
What is a key feature of a mixed economy?
Private ownership of resources only
Government control of all resources
Combination of private and public ownership of resources
Complete absence of government intervention
#9
What is the term for the cost of the next best alternative forgone when a decision is made?
Opportunity cost
Marginal cost
Variable cost
Fixed cost
#10
In a monopolistic competition market structure, how do firms differentiate their products?
By offering identical products
By engaging in price wars
By producing standardized goods
By creating product differentiation
#11
What is the term for the total amount of money in circulation in an economy?
Gross domestic product (GDP)
Consumer price index (CPI)
Money supply
Inflation rate
#12
In which market structure do a few firms dominate the industry and exert significant control over prices?
Monopoly
Oligopoly
Monopolistic competition
Perfect competition
#13
In a perfectly competitive market, what happens to profits in the long run?
Profits increase indefinitely
Profits stabilize and approach zero
Profits decrease gradually
Profits remain constant
#14
Which of the following is a characteristic of a perfect competition market structure?
High barriers to entry
Homogeneous products
Few buyers and sellers
Significant control over prices by individual firms
#15
What is the term for the increase in the general level of prices over time?
Recession
Deflation
Stagflation
Inflation
#16
What is the term for a situation where a single buyer or seller controls the market?
Oligopoly
Monopoly
Monopolistic competition
Perfect competition
#17
Which of the following is a tool used by central banks to control the money supply?
Fiscal policy
Monetary policy
Supply-side policy
Trade policy