#1
Which of the following is a characteristic of a traditional economic system?
Government control of economic activities
Individuals make economic decisions based on customs and traditions
Market-driven allocation of resources
Equal distribution of wealth
#2
What is the role of entrepreneurship in an economic system?
To enforce government regulations
To consume goods and services
To innovate, take risks, and create new businesses
To control market prices
#3
What is fiscal policy in economics?
The manipulation of interest rates by the central bank
Government's use of taxes and spending to influence the economy
The regulation of business practices by the government
The control of money supply in the economy
#4
In the context of international trade, what does comparative advantage refer to?
A country's ability to produce a good using fewer resources than another country
The absolute superiority of one country's products over others
The dominance of a single country in a particular industry
The ability of a country to control the global market
#5
What is the primary goal of supply-side economics?
Stabilizing the overall price level in the economy
Promoting economic growth through tax cuts and deregulation
Increasing government spending on social programs
Controlling the money supply
#6
In a market economy, prices are primarily determined by:
Government regulations
Supply and demand
Central planning committees
Historical pricing trends
#7
What is the main focus of the command economic system?
Private ownership of the means of production
Individual freedom and choice
Government control and central planning
Market competition
#8
In a mixed economic system, the government typically regulates:
All economic activities
Only international trade
Only social welfare programs
Certain aspects while allowing market forces in others
#9
Which economic indicator measures the overall health of an economy by considering the total value of goods and services produced within a country's borders?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment rate
Inflation rate
#10
Which of the following is a characteristic of a centrally planned (command) economy?
Private ownership of the means of production
Decentralized decision-making by individuals
Market-driven allocation of resources
Government control and direction of economic activities
#11
Which economic system emphasizes the role of the government in ensuring social welfare and reducing income inequality?
Market economy
Traditional economy
Command economy
Mixed economy
#12
What is the concept of opportunity cost in economics?
The cost of production inputs
The value of the best alternative forgone when a decision is made
The total cost of producing a good or service
The cost of goods and services in a free market
#13
What is a positive externality in economics?
An unintended side effect that harms a third party
A benefit enjoyed by a third party as a result of an economic transaction
The cost of producing an additional unit of a good
The total cost of production
#14
According to the law of demand, what happens to the quantity demanded when the price of a good or service increases?
Quantity demanded increases
Quantity demanded decreases
Quantity demanded remains unchanged
Quantity demanded is unrelated to price changes
#15
Which economic concept refers to the total market value of all final goods and services produced within a country in a specific period?
Gross National Product (GNP)
Net Domestic Product (NDP)
Net National Income (NNI)
Gross Domestic Product (GDP)