#1
What does GDP stand for in economics?
Gross Domestic Product
ExplanationMeasurement of a country's economic output.
#2
Which of the following is not a factor of production?
Consumption
ExplanationConsumption is not involved in production processes.
#3
What is the law of demand in economics?
As the price of a good or service decreases, the quantity demanded increases.
ExplanationInverse relationship between price and quantity demanded.
#4
Which of the following is not a characteristic of a perfectly competitive market?
High barriers to entry
ExplanationLow barriers facilitate entry of firms in a perfectly competitive market.
#5
What does the term 'elasticity' refer to in economics?
The responsiveness of quantity demanded to a change in price
ExplanationDegree of sensitivity in demand due to price changes.
#6
What is the formula for calculating the unemployment rate?
Unemployment rate = (Unemployed workers / Total labor force) × 100
ExplanationPercentage of unemployed individuals in the labor force.
#7
What does the term 'inflation' refer to in economics?
An increase in the general price level of goods and services
ExplanationRise in overall prices of goods and services.
#8
What is the formula to calculate the unemployment rate?
Unemployment rate = Unemployed workers / Labor force
ExplanationRatio of unemployed individuals to the labor force.
#9
What is the formula for calculating total revenue?
Total revenue = Price × Quantity demanded
ExplanationRevenue generated from sales.
#10
What is the difference between microeconomics and macroeconomics?
Microeconomics studies individual markets, while macroeconomics studies the economy as a whole.
ExplanationFocus on individual markets versus the entire economy.
#11
What is the formula for calculating price elasticity of demand?
Price elasticity of demand = (% change in quantity demanded) / (% change in price)
ExplanationPercentage change in quantity demanded relative to price change.
#12
Which of the following is a measure of central tendency?
Median
ExplanationMiddle value in a dataset.
#13
Which economist is known for the theory of comparative advantage?
David Ricardo
ExplanationEconomist who introduced the concept of comparative advantage.
#14
What is the opportunity cost of a decision?
The value of the next best alternative foregone
ExplanationValue of the best alternative not chosen.
#15
What is the difference between nominal GDP and real GDP?
Nominal GDP is not adjusted for inflation, while real GDP is.
ExplanationAdjustment for inflation in economic output.
#16
Which of the following is not a type of market structure?
Competition
ExplanationCompetition is a generic term, not a specific market structure.
#17
Which of the following is not a determinant of supply?
Number of buyers
ExplanationDeterminants of supply include factors other than buyer count.
#18
According to the law of diminishing returns, what happens as more units of a variable input are added to fixed inputs in production?
Total output increases at a decreasing rate
ExplanationDiminishing returns result in decreasing productivity.