#1
Which of the following is a fundamental principle of microeconomics?
Scarcity
Gross Domestic Product (GDP)
Inflation
Fiscal Policy
#2
What does the 'law of demand' state in microeconomics?
As price increases, demand increases
As price decreases, quantity demanded increases
As price increases, quantity demanded decreases
As price decreases, demand decreases
#3
What is the opportunity cost?
The cost of production
The cost of buying goods and services
The value of the next best alternative foregone
The cost of raw materials
#4
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and many sellers
One buyer and many sellers
Few buyers and many sellers
Many buyers and few sellers
#5
Which of the following is a characteristic of monopolistic competition?
Many buyers and many sellers
One buyer and many sellers
Few buyers and many sellers
Many buyers and few sellers
#6
What is the formula for calculating the unemployment rate?
Number of unemployed workers / Labor force
Number of employed workers / Labor force
Number of employed workers / Total population
Number of unemployed workers / Total population
#7
What is the formula for calculating total revenue?
Price * Quantity
Price / Quantity
Quantity / Price
Price + Quantity
#8
What is the equation for the GDP (Gross Domestic Product) in a closed economy?
GDP = Consumption + Investment + Government Spending + Net Exports
GDP = Consumption + Investment + Government Spending - Net Exports
GDP = Consumption + Investment + Government Spending * Net Exports
GDP = Consumption - Investment + Government Spending + Net Exports
#9
Which of the following is a component of aggregate demand in macroeconomics?
Price level
Unemployment rate
Interest rate
Consumption expenditure
#10
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
#11
Which of the following is a tool used by the Federal Reserve to conduct monetary policy?
Fiscal policy
Open market operations
Trade policy
Tax policy
#12
Which of the following is a tool used by the government for fiscal policy?
Open market operations
Discount rate
Government spending
Reserve requirement
#13
What is the formula for calculating the consumer price index (CPI)?
Total market value of all final goods and services produced within a country's borders in a given period
Total value of all goods and services produced by a country's nationals in a given period
Measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services
Measure of the level of prices of goods and services in an economy
#14
What is the formula for calculating real GDP?
Nominal GDP / GDP Deflator
Nominal GDP * GDP Deflator
Nominal GDP - GDP Deflator
Nominal GDP + GDP Deflator
#15
What does the Phillips curve depict in macroeconomics?
The relationship between inflation and unemployment
The relationship between GDP and unemployment
The relationship between GDP and inflation
The relationship between interest rates and inflation
#16
What is the 'crowding out effect' in macroeconomics?
An increase in government spending leads to a decrease in private investment
An increase in government spending leads to an increase in private investment
A decrease in government spending leads to a decrease in private investment
A decrease in government spending leads to an increase in private investment
#17
What is the concept of 'comparative advantage' in international trade?
A country can produce a good at a lower opportunity cost than another country
A country can produce a good using fewer resources than another country
A country can produce all goods more efficiently than another country
A country can produce a good at a higher opportunity cost than another country
#18
What is the concept of the 'Laffer curve' in economics?
It illustrates the relationship between taxes and government spending
It illustrates the relationship between tax rates and tax revenue
It illustrates the relationship between inflation and unemployment
It illustrates the relationship between interest rates and investment
#19
What is the concept of 'aggregate supply' in macroeconomics?
The total quantity of goods and services that firms are willing and able to supply at a given price level
The total quantity of goods and services that consumers are willing and able to purchase at a given price level
The total quantity of money in circulation in an economy
The total quantity of goods and services produced within a country's borders in a given period