#1
Which of the following is a characteristic of a market economy?
Private ownership of resources
ExplanationIndividuals and businesses own and control resources and production.
#2
What is the primary goal of microeconomics?
To study the behavior of individual consumers and firms
ExplanationFocuses on individual decision-making units in the economy.
#3
What is the term used to describe the total value of goods and services produced within a country in a given period?
Gross Domestic Product (GDP)
ExplanationRepresents the economic output of a nation.
#4
Which of the following is a measure of income inequality within a population?
Gini coefficient
ExplanationIndicates the distribution of income among individuals or households.
#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?
Gross Domestic Product (GDP)
ExplanationRepresents the market value of all finished goods and services.
#6
Which economic system advocates for collective ownership of resources and central planning?
Command economy
ExplanationGovernment controls resources and allocates goods and services.
#7
What does GDP stand for in economics?
Gross Domestic Product
ExplanationTotal value of all goods and services produced within a country.
#8
What does the term 'opportunity cost' refer to in economics?
The benefit foregone by choosing one alternative over another
ExplanationValue of the next best alternative that must be sacrificed.
#9
In economics, what does the law of demand state?
As the price of a good increases, the quantity demanded decreases
ExplanationInverse relationship between price and quantity demanded.
#10
What is the term used to describe the highest-valued alternative that must be sacrificed when choosing an option?
Opportunity cost
ExplanationThe cost of the next best alternative.
#11
Which of the following is NOT a factor of production in economics?
Money
ExplanationAlthough important, money is not considered a factor of production.
#12
Which of the following is an example of a regressive tax?
Sales tax
ExplanationTax that takes a larger percentage of income from low-income earners.
#13
In economics, what is the term used to describe the rate at which one currency can be exchanged for another?
Exchange rate
ExplanationDetermines the value of one currency relative to another.
#14
Which of the following is an example of fiscal policy?
Increasing government spending on infrastructure
ExplanationGovernment manipulation of spending and taxation to influence the economy.
#15
What does the term 'ceteris paribus' mean in economics?
All other factors being equal
ExplanationAssumption that all other variables remain constant.