Question 1

What is the basic economic problem that arises from the fact that resources are limited while wants are unlimited?

Accepted Answer

Scarcity

Answer

Surplus

Answer

Abundance

Answer

Consumption

Question 2

What term describes the cost of the next best alternative foregone when making a decision?

Accepted Answer

Opportunity cost

Answer

Fixed cost

Answer

Sunk cost

Answer

Marginal cost

Question 3

What is the measure of the total value of all goods and services produced within a country's borders in a specific time period?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Net National Product (NNP)

Answer

Gross National Product (GNP)

Answer

Consumer Price Index (CPI)

Question 4

What is the term for a situation where the quantity demanded of a good exceeds the quantity supplied at a specific price?

Accepted Answer

Shortage

Answer

Equilibrium

Answer

Surplus

Answer

Scarcity

Question 5

Which economic concept describes a situation where any change in price leads to a larger change in the quantity demanded or supplied?

Accepted Answer

Elasticity

Answer

Scarcity

Answer

Inelasticity

Answer

Market equilibrium

Question 6

What is the fundamental problem addressed by economics?

Accepted Answer

Scarcity and allocation of resources

Answer

Unemployment rates

Answer

Government policies

Answer

Inflation levels

Question 7

Which of the following is considered a factor of production?

Accepted Answer

Labor

Answer

Inflation

Answer

Money

Answer

Technology

Question 8

What is a market economy?

Accepted Answer

An economy where decisions are made based on supply and demand

Answer

An economy without any competition

Answer

An economy based on barter and trade

Answer

An economy controlled entirely by the government

Question 9

What is the primary purpose of taxation in an economy?

Accepted Answer

To raise revenue for government spending

Answer

To decrease employment

Answer

To increase profitability of businesses

Answer

To control inflation

Question 10

What does the law of demand state?

Accepted Answer

As the price of a good decreases, the quantity demanded increases

Answer

Higher prices lead to increased supply

Answer

As income increases, demand for inferior goods increases

Answer

Supply and demand are always equal

Question 11

What is an example of a non-renewable resource?

Accepted Answer

Oil

Answer

Water

Answer

Wind

Answer

Solar

Question 12

What does GDP stand for in economics?

Accepted Answer

Gross Domestic Product

Answer

General Department of Production

Answer

Gross Domestic Policy

Answer

Government Debt Projection

Question 13

What does the law of demand state?

Accepted Answer

As the price of a good decreases, the quantity demanded increases.

Answer

Price and quantity demanded are unrelated.

Answer

Quantity demanded is constant regardless of price.

Answer

As the price of a good increases, the quantity demanded decreases.

Question 14

What is a market economy?

Accepted Answer

An economic system where decisions are made based on supply and demand.

Answer

An economy where decisions are made solely by consumers.

Answer

An economic system with no competition.

Answer

An economy controlled entirely by the government.

Question 15

What is the concept of comparative advantage?

Accepted Answer

The ability of a party to produce a good at a lower opportunity cost than others.

Answer

The total production capacity of an economy.

Answer

The relationship between supply and demand.

Answer

The ability to produce more of a good than another party.

Question 16

What is the primary function of the stock market?

Accepted Answer

To facilitate the buying and selling of shares of publicly traded companies.

Answer

To regulate currency exchange rates.

Answer

To set interest rates for loans.

Answer

To control the production of goods.

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