#1
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and one seller
Many buyers and many sellers
One buyer and many sellers
One buyer and one seller
#2
What does the term 'opportunity cost' refer to in economics?
The total cost of producing a good
The cost of producing an additional unit of a good
The value of the next best alternative forgone
The price of a good in the market
#3
What is the role of the Federal Reserve in the U.S. economy?
Fiscal policy implementation
Regulating international trade
Controlling the money supply and interest rates
Overseeing taxation policies
#4
What is the concept of 'scarcity' in economics?
Unlimited wants and limited resources
Sufficient resources to fulfill all wants
Limited wants and unlimited resources
Equilibrium between wants and resources
#5
Which of the following is a characteristic of monopolistic competition?
Many buyers and many sellers
One buyer and many sellers
One buyer and one seller
Many buyers and one seller
#6
Which of the following is NOT a factor of production?
#7
What is the main purpose of the production possibility frontier (PPF) in economics?
To show the maximum output attainable given limited resources
To demonstrate the utility-maximizing behavior of consumers
To determine the equilibrium price and quantity in a market
To illustrate the distribution of income among different factors of production
#8
Which of the following is an example of a regressive tax?
Income tax
Sales tax
Property tax
Corporate tax
#9
What is the formula for calculating GDP (Gross Domestic Product)?
Consumption + Investment + Government Spending + Exports - Imports
Consumption + Investment + Exports - Imports
Consumption + Investment + Government Spending
Consumption + Government Spending + Exports - Imports
#10
Which of the following is a characteristic of a command economy?
Private ownership of resources
Centralized government planning
Free market allocation of resources
Laissez-faire economic policies
#11
In a monopolistic competition market structure, firms differentiate their products in order to:
Reduce production costs
Maximize profits
Minimize competition
Increase consumer surplus
#12
Which of the following is NOT a characteristic of a monopoly?
Single seller
Price taker
High barriers to entry
Unique product with no close substitutes
#13
What does the term 'elasticity of demand' measure?
The responsiveness of quantity demanded to a change in price
The responsiveness of price to a change in quantity demanded
The total demand for a good or service
The slope of the demand curve
#14
Which of the following is an example of a positive externality?
Pollution
Traffic congestion
Education
Cigarette smoking
#15
What is the formula for calculating price elasticity of demand?
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 multiplied by change in quantity demanded