#1
1. In economics, what does GDP stand for?
Gross Domestic Product
ExplanationMeasure of a country's economic performance, representing the total value of all goods and services produced over a specific time period.
#2
10. Which economic theory advocates for limited government intervention and emphasizes the role of the free market?
Classical economics
ExplanationEconomic philosophy emphasizing minimal government interference in markets and laissez-faire principles.
#3
12. In economic terms, what does the acronym OPEC stand for?
Organization of Petroleum Exporting Countries
ExplanationInternational organization coordinating oil production and pricing policies among member countries.
#4
17. According to the concept of the 'circular flow of income,' what are the two main sectors of the economy?
Households and firms
ExplanationModel illustrating the flow of money and goods between households and businesses in an economy.
#5
25. Which economic theory argues that government intervention is necessary to address market failures and ensure economic stability?
Keynesian economics
ExplanationEconomic theory advocating for government intervention to manage economic downturns and stabilize the economy.
#6
2. According to the law of demand, what happens to the quantity demanded when the price of a good decreases?
Increases
ExplanationInverse relationship between price and quantity demanded; as price drops, consumers buy more.
#7
3. Which economic system relies on private ownership and individual decision-making?
Market economy
ExplanationAllocation of resources and decisions made by individuals and businesses in a competitive market.
#8
6. What is the Tragedy of the Commons in economics?
Overconsumption of shared resources due to lack of property rights
ExplanationDeterioration of commonly held resources when individuals act in self-interest.
#9
7. Which economic indicator measures the average change in prices of goods and services over time?
Inflation rate
ExplanationPercentage increase in the general price level of goods and services.
#10
11. What is the concept of 'marginal utility' in economics?
The additional satisfaction derived from consuming one more unit of a good
ExplanationExtra satisfaction gained by consuming an additional unit of a good or service.
#11
4. What is the concept of 'opportunity cost' in economics?
The cost of giving up the next best alternative
ExplanationValue of the best alternative forgone when a decision is made.
#12
5. In the context of societal values, what does the term 'social equity' refer to?
Equal distribution of wealth and resources
ExplanationFair and just distribution of resources, opportunities, and privileges within a society.
#13
8. According to the concept of externalities, what is a positive externality?
A side effect that benefits an uninvolved third party
ExplanationPositive impact on a third party not involved in the economic activity.
#14
9. In societal values, what does the term 'cultural relativism' mean?
Judging a culture based on one's own cultural standards
ExplanationUnderstanding and assessing a culture within its own context, avoiding ethnocentrism.
#15
13. According to Adam Smith, what term is used to describe the self-regulating nature of a free market without government intervention?
Invisible hand
ExplanationMarket forces guiding individuals to unintentionally contribute to the overall economic well-being.