#1
Which of the following is a characteristic of a market economy?
Centralized decision-making
Government control of prices
Private ownership of resources
Equal distribution of wealth
#2
What is the primary goal of microeconomics?
To study the behavior of individual consumers and firms
To analyze the overall performance of the economy
To determine government policies for economic growth
To study international trade patterns
#3
What is the term used to describe the total value of goods and services produced within a country in a given period?
Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#4
Which of the following is a measure of income inequality within a population?
Consumer Price Index (CPI)
Gini coefficient
Balance of Trade
Labor Force Participation Rate
#5
What is the economic term for the total value of all final goods and services produced within a country's borders in a specific period?
National Income
Gross National Product (GNP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#6
Which economic system advocates for collective ownership of resources and central planning?
Market economy
Command economy
Mixed economy
Traditional economy
#7
What does GDP stand for in economics?
Gross Domestic Product
Growth and Development Protocol
Government Development Program
Gross Distribution Process
#8
What does the term 'opportunity cost' refer to in economics?
The cost of goods and services in an economy
The monetary value of an economic decision
The benefit foregone by choosing one alternative over another
The total cost of production
#9
In economics, what does the law of demand state?
As the price of a good decreases, the quantity demanded decreases
As the price of a good increases, the quantity demanded increases
As the price of a good increases, the quantity demanded decreases
As the price of a good decreases, the quantity demanded increases
#10
What is the term used to describe the highest-valued alternative that must be sacrificed when choosing an option?
Utility
Opportunity cost
Marginal cost
Sunk cost
#11
Which of the following is NOT a factor of production in economics?
Labor
Entrepreneurship
Money
Land
#12
Which of the following is an example of a regressive tax?
Sales tax
Progressive tax
Income tax
Property tax
#13
In economics, what is the term used to describe the rate at which one currency can be exchanged for another?
Exchange rate
Interest rate
Inflation rate
Growth rate
#14
Which of the following is an example of fiscal policy?
Decreasing the reserve requirement
Buying government securities in the open market
Increasing government spending on infrastructure
Lowering the federal funds rate
#15
What does the term 'ceteris paribus' mean in economics?
All other factors being equal
Demand exceeds supply
Government intervention
Market equilibrium