#1
What is opportunity cost?
The value of the next best alternative foregone when a decision is made
ExplanationValue of what's given up for what's chosen.
#2
Which of the following is NOT a factor of production?
Money
ExplanationNot a direct input into the production process.
#3
What is the law of demand?
As price decreases, quantity demanded increases
ExplanationInverse relationship between price and quantity demanded.
#4
Which of the following is a measure of central tendency?
Median
ExplanationMiddle value in a data set.
#5
What is the law of supply?
As price increases, quantity supplied increases
ExplanationDirect relationship between price and quantity supplied.
#6
What does GDP stand for?
Gross Domestic Product
ExplanationTotal value of goods and services produced within a country.
#7
What is the formula to calculate price elasticity of demand?
Percentage change in quantity demanded divided by percentage change in price
ExplanationMeasure of responsiveness of quantity demanded to price changes.
#8
What is the law of diminishing marginal utility?
As a consumer consumes more units of a good or service, the additional satisfaction from each additional unit decreases
ExplanationDecreasing satisfaction from consuming more of a good.
#9
What is fiscal policy?
A policy that involves government spending and taxation
ExplanationGovernment's use of spending and taxation to influence the economy.
#10
Which of the following is a characteristic of perfect competition?
A large number of buyers and sellers
ExplanationMany firms selling identical products with no market power.
#11
In economics, what does 'ceteris paribus' mean?
All other things being equal
ExplanationHolding all other factors constant.
#12
Which of the following is a tool of monetary policy?
Open market operations
ExplanationBuying and selling government securities to control money supply.