#1
Which of the following is a characteristic of a perfectly competitive market?
A large number of buyers and sellers
Product differentiation
Barriers to entry
Price setting power by individual firms
#2
What does GDP stand for?
Gross Domestic Product
Gross Domestic Profit
Growth Development Process
Global Demand Production
#3
What is the primary function of central banks in an economy?
To regulate fiscal policy
To control inflation
To oversee commercial banks
To distribute welfare benefits
#4
What is the term used to describe the total value of goods and services produced within a country in a given time period?
National income
Gross Domestic Product (GDP)
Net exports
Consumer surplus
#5
What is the term used to describe a situation where the quantity of a good supplied exceeds the quantity demanded at a given price?
Surplus
Shortage
Equilibrium
Monopoly
#6
What does the 'Law of Supply' state?
Price increases as supply decreases
Price decreases as supply decreases
Price increases as supply increases
Price decreases as supply increases
#7
What does the 'Law of Demand' state?
Price decreases as demand decreases
Price increases as demand increases
Price decreases as demand increases
Price increases as demand decreases
#8
What is the formula to calculate Price Elasticity of Demand (PED)?
Percentage change in quantity demanded divided by percentage change in price
Percentage change in price divided by percentage change in quantity demanded
Change in quantity demanded multiplied by change in price
Change in price divided by change in quantity demanded
#9
Which of the following is a characteristic of monopolistic competition?
Many buyers and few sellers
Homogeneous products
Barriers to entry
Product differentiation
#10
What does the term 'marginal utility' refer to in economics?
The total satisfaction derived from consuming a good
The additional satisfaction gained from consuming one more unit of a good
The ratio of total utility to total consumption
The total satisfaction divided by the price of the good
#11
Which of the following is a measure of income inequality?
Gini coefficient
Consumer price index
Aggregate demand
Inflation rate
#12
What is the term used to describe a market structure where there is only one seller of a unique product with no close substitutes?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#13
In economics, what does 'opportunity cost' refer to?
The total cost of production
The cost of an alternative that must be forgone to pursue a certain action
The monetary cost of an item
The cost of labor
#14
Which of the following is a tool of monetary policy used by central banks to influence the money supply?
Fiscal deficit
Quantitative easing
Trade embargo
Income tax
#15
What is the name of the economic theory that suggests government intervention in the economy should be minimal to achieve efficiency?
Keynesian economics
Monetarism
Supply-side economics
Neoclassical economics
#16
In economics, what does 'ceteris paribus' mean?
All other things being equal
Supply equals demand
Marginal utility is maximized
Costs are minimized
#17
What is the term used to describe the situation where a good is consumed by one person and cannot be consumed by another person?
Excludability
Rivalry
Public good
Private good