#1
Which of the following is an example of a normal good in economics?
Generic medication
Luxury car
Public transportation
Used clothing
#2
In economics, what does the abbreviation GDP stand for?
Gross Domestic Product
Gross Demand Price
General Demand Percentage
General Domestic Pricing
#3
What is the main objective of monetary policy?
Stabilize prices and control inflation
Promote economic growth
Reduce unemployment
Regulate international trade
#4
What is the term used to describe the total market value of all final goods and services produced within a country in a given period of time?
Net national product
Gross national product
Net domestic product
Gross domestic product
#5
In economics, what is the term used to describe the additional cost incurred by producing one more unit of a good?
Average cost
Fixed cost
Marginal cost
Total cost
#6
What does the term 'elasticity of demand' measure?
The responsiveness of quantity demanded to changes in price
The total quantity demanded at a given price level
The change in quantity demanded due to changes in income
The demand for elastic goods
#7
Which of the following is a characteristic of a perfectly competitive market?
A large number of firms with differentiated products
High barriers to entry
Homogeneous products
Significant control over market price by individual firms
#8
Which of the following is an example of a complementary good?
Peanut butter and jelly
Coffee and tea
Butter and margarine
Apples and oranges
#9
What is the term used to describe a situation where the production of one good reduces the production possibilities of another good?
Trade-off
Opportunity cost
Marginal utility
Diminishing returns
#10
Which of the following is a characteristic of monopolistic competition?
A single firm dominates the market
Homogeneous products
Low barriers to entry
Perfect information available to all market participants
#11
What is the term used to describe a situation where a good is non-rivalrous and non-excludable?
Public good
Private good
Club good
Common resource
#12
Which of the following is an example of a pure public good?
Private park
Fireworks display
Cable television
Bottled water
#13
What is the term used to describe a situation where resources are allocated efficiently in the production of goods and services?
Market equilibrium
Pareto efficiency
Consumer surplus
Producer surplus
#14
Which of the following is a characteristic of a command economy?
Private ownership of the means of production
Decentralized decision-making
Government control over resource allocation
Laissez-faire approach