#1
Which of the following is a basic economic principle?
Supply and demand
ExplanationFoundation of pricing and allocation in markets.
#2
What is the economic term for the total value of goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationMeasure of a nation's economic output.
#3
What does the term 'ceteris paribus' mean in economics?
All other things being equal
ExplanationIsolating variables by assuming other factors remain constant.
#4
What is the primary function of the invisible hand in economics?
Balancing supply and demand
ExplanationUnintended market coordination through individual self-interest.
#5
Which economic concept suggests that individuals seek to maximize their utility or satisfaction?
Rational choice theory
ExplanationDecision-making based on optimizing personal satisfaction.
#6
According to the law of diminishing marginal utility, what happens as a person consumes more units of a good or service?
Marginal utility decreases
ExplanationDecline in additional satisfaction as consumption increases.
#7
Which economic principle suggests that the opportunity cost of an action should be considered when making decisions?
Opportunity cost
ExplanationEvaluation of alternative choices' forgone benefits.
#8
Which of the following is an example of a regressive tax?
Sales tax
ExplanationTax disproportionately impacting lower-income individuals.
#9
Which economic theory suggests that government intervention in the economy should be minimal?
Austrian economics
ExplanationAdvocacy for limited government involvement in economic affairs.