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Fundamentals of Business and Economic Environment Quiz

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Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?

Consumer Price Index (CPI)

Explanation

CPI measures inflation by tracking changes in consumer prices.

Which of the following is NOT a function of money in an economy?

Government control

Explanation

Money doesn't directly involve government control in its functions.

What does GDP stand for in economics?

Gross Domestic Product

Explanation

GDP measures the total value of goods and services produced in a country.

What is the economic term for the total value of all goods and services produced within a country's borders over a specific period?

Gross Domestic Product (GDP)

Explanation

GDP represents the total economic output of a nation.

What is the economic term for a situation where the quantity of goods demanded is equal to the quantity supplied?

Equilibrium

Explanation

Equilibrium occurs when supply equals demand in the market.

Which of the following is NOT a characteristic of a perfectly competitive market?

Significant barriers to entry

Explanation

Perfectly competitive markets have low barriers to entry.

What is fiscal policy?

Government's use of taxation and spending to influence the economy

Explanation

Fiscal policy involves government's use of taxation and spending to manage the economy.

Which of the following is NOT a characteristic of monopolistic competition?

Perfect substitutes

Explanation

Monopolistic competition involves differentiated products, not perfect substitutes.

In economics, what does the term 'opportunity cost' refer to?

The value of the next best alternative forgone

Explanation

Opportunity cost refers to the value of the best alternative not chosen.

#10

What is the name of the market structure characterized by a large number of sellers offering similar but differentiated products?

Monopolistic competition

Explanation

Monopolistic competition involves differentiated products.

#11

What is the term used to describe the measure of responsiveness in the quantity demanded of a good to a change in its price?

Elasticity

Explanation

Elasticity measures responsiveness of quantity demanded to price changes.

Fundamentals of Business and Economic Environment Quiz

Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?

Which of the following is NOT a function of money in an economy?

What does GDP stand for in economics?

What is the economic term for the total value of all goods and services produced within a country's borders over a specific period?

What is the economic term for a situation where the quantity of goods demanded is equal to the quantity supplied?

Which of the following is NOT a characteristic of a perfectly competitive market?

What is fiscal policy?

Which of the following is NOT a characteristic of monopolistic competition?

In economics, what does the term 'opportunity cost' refer to?

What is the name of the market structure characterized by a large number of sellers offering similar but differentiated products?

What is the term used to describe the measure of responsiveness in the quantity demanded of a good to a change in its price?

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