Which economic system is characterized by private ownership of resources and the pursuit of individual profits?
a) Capitalism
b) Socialism
c) Communism
d) Mercantilism
Answer: a) Capitalism
In economics, what does GDP stand for?
a) Gross Domestic Profit
b) Government Distribution Plan
c) Gross Domestic Product
d) General Development Program
Answer: c) Gross Domestic Product
What is the term used to describe a sustained increase in the general price level of goods and services?
a) Deflation
b) Stagflation
c) Inflation
d) Recession
Answer: c) Inflation
Which type of market structure is characterized by a single seller and no close substitutes?
a) Monopoly
b) Oligopoly
c) Perfect competition
d) Monopolistic competition
Answer: a) Monopoly
What is the economic term for the total market value of all final goods and services produced within a country in a given period of time?
a) Gross National Product
b) Gross Domestic Product
c) Net National Product
d) Net Domestic Product
Answer: b) Gross Domestic Product
Which economic indicator measures the average price level of a basket of goods and services over time?
a) Consumer Price Index (CPI)
b) Gross Domestic Product (GDP)
c) Unemployment Rate
d) Inflation Rate
Answer: a) Consumer Price Index (CPI)
What does the term “supply and demand” refer to in economics?
a) The relationship between the quantity of a product that producers are willing to supply and the quantity that consumers are willing to buy
b) The relationship between the quantity of a product that consumers are willing to buy and the price of the product
c) The relationship between the quantity of a product that producers are willing to supply and the price of the product
d) The relationship between the quantity of a product that consumers are willing to buy and the quantity that producers are willing to supply
Answer: d) The relationship between the quantity of a product that consumers are willing to buy and the quantity that producers are willing to supply
What is the term used to describe the process of converting inputs into outputs in the production of goods and services?
a) Supply chain management
b) Production function
c) Distribution process
d) Capital investment
Answer: b) Production function
What is the term for the study of how individuals, businesses, and governments make choices about allocating scarce resources?
a) Microeconomics
b) Macroeconomics
c) Econometrics
d) International economics
Answer: a) Microeconomics
What does the term “opportunity cost” refer to in economics?
a) The cost of producing one additional unit of a good or service
b) The cost of using resources for one purpose instead of their next best alternative use
c) The cost of borrowing money from a bank
d) The cost of producing a good or service using the most efficient technology available
Answer: b) The cost of using resources for one purpose instead of their next best alternative use
Which economic indicator measures the percentage of people in the labor force who are unemployed and actively seeking employment?
a) Consumer Price Index (CPI)
b) Gross Domestic Product (GDP)
c) Unemployment Rate
d) Inflation Rate
Answer: c) Unemployment Rate
What is the term for a sustained period of economic decline characterized by falling output and employment levels?
a) Inflation
b) Recession
c) Deflation
d) Depression
Answer: b) Recession
Which economic theory advocates for government intervention in the economy to stabilize economic activity and promote economic growth?
a) Keynesian economics
b) Neoclassical economics
c) Supply-side economics
d) Austrian economics
Answer: a) Keynesian economics
What is the term for the total value of all final goods and services produced by the residents of a country within a specific time period, regardless of location?
a) Gross National Product (GNP)
b) Gross Domestic Product (GDP)
c) Net National Product (NNP)
d) Net Domestic Product (NDP)
Answer: a) Gross National Product (GNP)
What is the term for the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling?
a) Deflation
b) Inflation
c) Recession
d) Stagflation
Answer: b) Inflation
What is the term for a market structure characterized by a few large firms dominating the market?
a) Monopoly
b) Oligopoly
c) Perfect competition
d) Monopolistic competition
Answer: b) Oligopoly
What is the term for the measure of how responsive the quantity demanded of a good is to a change in its price?
a) Price elasticity of supply
b) Price elasticity of demand
c) Income elasticity of demand
d) Cross elasticity of demand
Answer: b) Price elasticity of demand
What is the term for the total market value of all final goods and services produced by a country’s residents within a specific time period, regardless of production location?
a) Gross Domestic Product (GDP)
b) Gross National Product (GNP)
c) Net Domestic Product (NDP)
d) Net National Product (NNP)
Answer: a) Gross Domestic Product (GDP)
Which economic indicator measures the average level of prices for goods and services typically consumed by households?
a) Consumer Price Index (CPI)
b) Gross Domestic Product (GDP)
c) Unemployment Rate
d) Inflation Rate
Answer: a) Consumer Price Index (CPI)
