#1
Which of the following is a basic economic problem?
How to allocate scarce resources
ExplanationAddressing resource allocation amidst scarcity.
#2
Which of the following is not a factor of production?
Profit
ExplanationProfit is a result rather than a factor of production.
#3
In economics, what does the law of demand state?
As the price of a good increases, the quantity demanded decreases
ExplanationInverse relationship between price and quantity demanded.
#4
What is GDP (Gross Domestic Product)?
The total value of all goods and services produced in a country in a year
ExplanationAggregate value of a nation's goods and services.
#5
What is inflation?
A situation where the prices of goods and services are rising
ExplanationGeneral increase in prices.
#6
What does the term 'Ceteris Paribus' mean in economics?
All other things being equal
ExplanationAssuming unchanged external factors for analysis.
#7
What is the concept of opportunity cost?
The cost of the next best alternative foregone
ExplanationThe value of the next best alternative sacrificed.
#8
What is the difference between microeconomics and macroeconomics?
Microeconomics studies individual markets, while macroeconomics studies the economy as a whole
ExplanationMicro focuses on specific markets; macro studies entire economies.
#9
What is the difference between a recession and a depression?
A recession is shorter and less severe than a depression
ExplanationDifference in duration and severity of economic downturns.
#10
What is the concept of elasticity in economics?
The measure of how responsive quantity demanded is to a change in price
ExplanationDegree of responsiveness of quantity to price changes.