#1
Which of the following is a fundamental principle of microeconomics?
Supply and demand
Aggregate demand
Monetary policy
Fiscal policy
#2
What does the law of demand state?
As price increases, demand increases
As price increases, demand decreases
As price decreases, demand increases
As price decreases, demand remains constant
#3
In macroeconomics, what does GDP stand for?
Gross Domestic Product
Gross Distribution Process
General Demand Pattern
Global Development Program
#4
What is the formula for calculating total revenue?
Price × Quantity
Price ÷ Quantity
Quantity × Cost
Cost ÷ Quantity
#5
What does the term 'ceteris paribus' mean in economics?
All other things being equal
All other things being different
All other things being constant
All other things being variable
#6
What is the law of supply?
As price increases, supply decreases
As price decreases, supply increases
As price increases, supply increases
As price decreases, supply remains constant
#7
Which of the following is a characteristic of perfect competition?
Many buyers and one seller
One buyer and many sellers
Many buyers and many sellers
One buyer and one seller
#8
What is the opportunity cost of a decision?
The monetary cost
The value of the best alternative foregone
The total cost of production
The fixed cost
#9
What does elasticity measure in economics?
The slope of the demand curve
The responsiveness of quantity demanded to changes in price
The total revenue of a firm
The level of consumer satisfaction
#10
Which of the following is an example of a positive externality?
Pollution
Education
Traffic congestion
Noise pollution
#11
What is the role of government intervention in a market economy?
To eliminate all forms of market failures
To regulate and correct market failures
To minimize competition among firms
To maximize profit for firms
#12
What is the law of diminishing marginal utility?
As consumption increases, total utility increases at a decreasing rate
As consumption increases, total utility increases at a constant rate
As consumption increases, total utility remains constant
As consumption increases, total utility decreases
#13
Which of the following is NOT a factor of production?
Labor
Capital
Technology
Entrepreneurship
#14
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Total revenue / Quantity demanded
Quantity demanded / Total revenue
#15
Which of the following is a characteristic of a perfectly elastic demand curve?
It is horizontal
It is vertical
It is upward-sloping
It is downward-sloping
#16
What is the formula for calculating elasticity of supply?
Percentage change in quantity supplied / Percentage change in price
Percentage change in price / Percentage change in quantity supplied
Total revenue / Quantity supplied
Quantity supplied / Total revenue
#17
What is the law of diminishing returns?
As more units of a variable input are added to fixed inputs, marginal product increases
As more units of a variable input are added to fixed inputs, marginal product decreases
As more units of a variable input are added to fixed inputs, total product increases at a decreasing rate
As more units of a variable input are added to fixed inputs, total product remains constant
#18
What is the law of diminishing marginal returns?
As more units of a variable input are added to fixed inputs, marginal product increases
As more units of a variable input are added to fixed inputs, marginal product decreases
As more units of a variable input are added to fixed inputs, total product increases at a decreasing rate
As more units of a variable input are added to fixed inputs, total product remains constant