#1
Which economic concept refers to the total value of goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationTotal value of a country's production.
#2
In economics, what does the term 'opportunity cost' refer to?
The cost of the next best alternative foregone when a decision is made.
ExplanationCost of foregoing the next best alternative.
#3
What is the term used to describe a situation where one company or a group of companies dominates a particular market or industry?
Monopoly
ExplanationSingle or dominant control in a market.
#4
In economics, what does the term 'elasticity' measure?
The responsiveness of quantity demanded to a change in price
ExplanationExtent of demand change due to price shift.
#5
What is the term used to describe a situation where the government spends more money than it collects in revenue during a fiscal year?
Budget deficit
ExplanationGovernment's fiscal shortfall.
#6
What economic term is used to describe a situation where the price of a good or service increases over time?
Inflation
ExplanationRising prices over a period.
#7
Which of the following best describes the term 'disruptive technology'?
A technology that revolutionizes and significantly alters existing industries or markets.
ExplanationTechnology causing major industry shifts.
#8
What effect does automation typically have on the labor market?
Leads to a shift in the types of jobs available, but overall employment remains stable.
ExplanationShifts job types but maintains overall employment.
#9
Which of the following is NOT a characteristic of a perfectly competitive market?
Barriers to entry
ExplanationAbsence of obstacles for market entry.
#10
Which of the following best describes the concept of 'comparative advantage'?
When a country can produce a good at a lower opportunity cost than another country.
ExplanationEfficient production relative to other nations.
#11
Which of the following is a characteristic of a command economy?
Government control over resource allocation
ExplanationState-directed resource distribution.
#12
Which of the following is NOT considered a factor of production in economics?
Money
ExplanationNot a primary production input.
#13
Which economic theory suggests that technological advancements lead to increased productivity and economic growth?
Endogenous Growth Theory
ExplanationTechnological progress driving economic growth.
#14
What is the primary role of central banks in managing the economy?
Controlling inflation and monetary policy
ExplanationOverseeing inflation and monetary strategy.