#1
Which of the following best defines the law of supply?
As prices increase, quantity demanded decreases.
As prices decrease, quantity supplied decreases.
As prices increase, quantity supplied increases.
As prices decrease, quantity demanded increases.
#2
What does GDP stand for in economics?
Gross Domestic Product
Government Demand Protocol
Gross Demographic Pattern
Global Demand Parameter
#3
According to the law of demand, what happens to the quantity demanded of a good when its price decreases, assuming all other factors remain constant?
It increases
It decreases
It remains the same
It fluctuates randomly
#4
What is the concept of 'opportunity cost' in economics?
The total cost of producing a good or service
The cost of resources used in production
The value of the next best alternative foregone when a choice is made
The cost of resources used in consumption
#5
Which economic system is characterized by private ownership of resources and decentralized decision-making?
Socialism
Capitalism
Communism
Feudalism
#6
What is the term for a sustained increase in the general price level of goods and services in an economy?
Recession
Deflation
Inflation
Stagflation
#7
Which economic principle states that as more units of a good are consumed, the additional utility from each additional unit decreases?
Marginal Utility
Diminishing Returns
Elasticity of Demand
Opportunity Cost
#8
What is the term for the total value of goods and services produced within a country's borders in a specific time period?
Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#9
What is the primary function of the Federal Reserve System in the United States?
Fiscal policy implementation
Monetary policy implementation
Trade regulation
Tax collection
#10
What does the term 'invisible hand' refer to in economics?
Government intervention in the market
Natural market forces guiding self-interest toward societal benefit
The role of central banks in monetary policy
A measure of market equilibrium
#11
In the context of international trade, what is a tariff?
A tax imposed on imported goods
A subsidy given to domestic producers
A restriction on the quantity of imports
An agreement between countries to reduce trade barriers
#12
What is the difference between microeconomics and macroeconomics?
Microeconomics studies individual markets, while macroeconomics studies the economy as a whole.
Microeconomics studies the economy as a whole, while macroeconomics studies individual markets.
Microeconomics focuses on international trade, while macroeconomics focuses on domestic trade.
Macroeconomics focuses on government policy, while microeconomics focuses on consumer behavior.
#13
In economics, what is the term for a situation where resources are allocated in the most efficient manner to maximize overall economic output?
Equilibrium
Optimization
Efficiency
Sustainability