#1
Which of the following is not a factor of production?
Money
ExplanationNot a resource used for production
#2
Which economic system relies on government control and ownership of resources and production?
Command economy
ExplanationGovernment control of resources
#3
What is the primary goal of a firm in a market economy?
Maximizing profits
ExplanationProfit maximization
#4
What is the term used to describe the total market value of all final goods and services produced within a country in a given period of time?
Gross Domestic Product (GDP)
ExplanationAggregate market value
#5
What is the term used to describe the total value of all goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationTotal production value
#6
Which of the following best describes the concept of opportunity cost?
The cost of an alternative that must be forgone in order to pursue a certain action
ExplanationCost of the next best alternative
#7
In economics, what does the law of diminishing marginal utility state?
As the quantity of a good consumed increases, the total utility derived from it decreases
ExplanationDecreasing additional satisfaction
#8
What is the main function of the Federal Reserve System in the United States?
Regulating the nation's monetary policy and money supply
ExplanationMonetary policy regulation
#9
What is the formula to calculate GDP (Gross Domestic Product)?
GDP = Consumption + Investment + Government Spending + (Exports - Imports)
ExplanationTotal value of goods and services
#10
Which of the following is not a characteristic of a perfectly competitive market?
Barriers to entry
ExplanationNo obstacles for entry or exit
#11
What is the formula for calculating elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
ExplanationDemand responsiveness calculation
#12
What is the term used to describe the situation where a country can produce a good at a lower opportunity cost than another country?
Comparative advantage
ExplanationLower cost production advantage
#13
What does the term 'invisible hand' refer to in economics?
The self-regulating nature of markets
ExplanationMarket self-regulation concept