#1
Which of the following best defines opportunity cost?
The monetary cost of an opportunity
The value of the next best alternative foregone
The total cost of production
The profit margin of a business
#2
In economics, what does GDP stand for?
Gross Domestic Product
Global Demand Protocol
Government Distribution Program
General Development Process
#3
Which of the following is NOT a factor of production in economics?
Land
Labor
Technology
Capital
#4
What is the primary goal of fiscal policy?
To control the money supply and interest rates
To stabilize the economy through government spending and taxation
To regulate international trade
To manage unemployment levels
#5
What does the term 'inflation' refer to in economics?
A sustained increase in the general price level of goods and services
A decrease in the general price level of goods and services
An increase in the quantity of money in circulation
A decrease in the quantity of money in circulation
#6
Which economic principle suggests that as the price of a good increases, the quantity demanded decreases, all else being equal?
Law of Supply
Law of Demand
Law of Diminishing Marginal Utility
Law of Opportunity Cost
#7
What does the term 'monopoly' refer to in economics?
A market structure with many buyers and sellers
A market with no government intervention
A market with only one seller and many buyers
A market where all goods are identical
#8
What does the term 'elasticity' refer to in economics?
The ease with which a firm can enter or exit an industry
The responsiveness of quantity demanded to a change in price
The total revenue earned by a firm
The amount of government regulation in an industry
#9
What is the main function of a central bank in a country's economy?
To regulate the stock market
To manage fiscal policy
To control inflation and interest rates
To oversee international trade agreements
#10
Which of the following is a characteristic of a perfectly competitive market?
Numerous buyers and sellers with differentiated products
Barriers to entry for new firms
Control over prices by individual firms
Homogeneous products and ease of entry and exit
#11
Which economist is famously known for his theory of the 'Invisible Hand'?
John Maynard Keynes
Karl Marx
Adam Smith
Milton Friedman
#12
According to the law of diminishing returns, what happens when additional units of a variable input are added to a fixed input in the production process?
Total product increases at a decreasing rate
Total product increases at an increasing rate
Total product decreases at a decreasing rate
Total product remains constant
#13
In economics, what is the term used to describe the level of output where marginal cost equals marginal revenue?
Profit maximization
Break-even point
Shutdown point
Equilibrium point