#1
Which of the following is a basic economic concept?
Inflation
ExplanationA sustained increase in the general price level of goods and services in an economy over a period of time.
#2
What does GDP stand for?
Gross Domestic Product
ExplanationThe total value of all goods and services produced within a country's borders in a specific time period.
#3
What is the economic term for the condition where resources are limited in comparison to the wants and needs they are supposed to fulfill?
Scarcity
ExplanationThe fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.
#4
Which economic concept refers to the amount of a good or service that consumers are willing and able to purchase at a given price?
Demand
ExplanationThe desire and ability of consumers to purchase a good or service at a given price.
#5
Which economic concept refers to the study of how individuals and societies allocate resources for production?
Microeconomics
ExplanationThe branch of economics that focuses on individuals, households, and firms and their behavior in decision-making and allocation of resources.
#6
What is the term used to describe the additional cost incurred by producing one more unit of a good or service?
Marginal Cost
ExplanationThe cost of producing one additional unit of a good or service.
#7
What does the term 'opportunity cost' refer to in economics?
The highest-valued alternative that must be sacrificed to choose an option
ExplanationThe value of the next best alternative forgone when a decision is made.
#8
Which economic concept refers to the total market value of all final goods and services produced within a country in a given period?
Gross Domestic Product (GDP)
ExplanationThe monetary value of all finished goods and services produced within a country's borders in a specific time period.
#9
Which of the following is NOT a factor of production in economics?
Technology
ExplanationWhile technology facilitates production, it is not itself a factor of production; factors include land, labor, and capital.
#10
Which economic concept refers to a sustained increase in the general price level of goods and services in an economy over a period of time?
Inflation
ExplanationA persistent rise in the general price level of goods and services over a period of time.
#11
Which economic concept refers to the total value of all goods and services produced within a country's borders in a specific time period?
Gross Domestic Product
ExplanationThe market value of all final goods and services produced within a country in a given period of time.