English Tenses Quiz
1. What does the law of demand state?
A. As the price of a good increases, the quantity demanded increases
B. As the price of a good decreases, the quantity demanded decreases
C. As the price of a good decreases, the quantity demanded increases
D. Price and demand are unrelated
2. Which market structure is characterized by a single seller with significant market power?
A. Perfect Competition
B. Monopoly
C. Oligopoly
D. Monopolistic Competition
3. In which economic system does the government control most of the economic resources?
A. Capitalism
B. Socialism
C. Mixed Economy
D. Market Economy
4. What is the main purpose of monetary policy?
A. To regulate government spending
B. To manage the money supply and interest rates
C. To collect taxes
D. To control inflation through fiscal policy
5. What is the difference between nominal GDP and real GDP?
A. Nominal GDP is adjusted for inflation, but real GDP is not
B. Real GDP is adjusted for inflation, but nominal GDP is not
C. Both are adjusted for inflation
D. None of the above
6. What is the key assumption of the theory of perfect competition?
A. There are many buyers and sellers, and products are identical
B. There is one large seller with significant market power
C. The government controls production
D. There is only one buyer and one seller
7. Which of the following is an example of a public good?
A. A new television
B. A public park
C. A private gym membership
D. A fast-food meal
8. Which of the following is an example of an oligopoly?
A. Agriculture market
B. Oil companies
C. Retail stores
D. Car repairs
9. What does the term "inflation" refer to in economics?
A. A decrease in the general price level of goods and services
B. An increase in the general price level of goods and services
C. A decrease in the money supply
D. An increase in unemployment
10. Which of the following is a tool used in fiscal policy?
A. Taxation and government spending
B. Setting interest rates
C. Open market operations
D. Managing the money supply
11. What is the main goal of monetary policy?
A. To regulate inflation and stabilize currency
B. To promote government spending
C. To manage natural resources
D. To provide public goods
12. Which of the following represents a command economy?
A. Market forces dictate production
B. Government makes all economic decisions
C. Goods and services are produced based on individual preferences
D. There is little government intervention
13. What does the term "elasticity" refer to in economics?
A. The responsiveness of quantity demanded or supplied to changes in price
B. The total quantity demanded in the market
C. The time taken to respond to changes in market conditions
D. The ability of a market to adjust quickly to shocks
14. What is the focus of development economics?
A. Maximizing profits
B. Improving living standards and economic health in developing countries
C. Managing inflation in advanced economies
D. Focusing on high-income economies
15. What is a monopoly?
A. A market structure where many firms sell identical products
B. A market structure where one firm controls the entire supply of a product or service
C. A market structure where several firms dominate the market
D. A market structure with perfect competition
16. What does "opportunity cost" refer to in economics?
A. The cost of producing goods and services
B. The next best alternative foregone when a decision is made
C. The total amount of money spent on an activity
D. The loss due to inflation
17. What is the economic effect of inflation?
A. Increases the purchasing power of money
B. Reduces the cost of goods and services
C. Decreases the value of money
D. Increases interest rates
18. What is fiscal policy primarily concerned with?
A. Managing interest rates
B. Government taxation and spending
C. Controlling inflation through money supply
D. Regulating stock market activities
19. Which of the following would be an example of a positive externality?
A. Pollution from a factory
B. Education leading to a more skilled workforce
C. Overfishing of natural resources
D. Traffic congestion
20. What does the term "monetary policy" refer to?
A. The government's regulation of taxes
B. The manipulation of interest rates and money supply
C. The control of public debt
D. The setting of government spending priorities
21. Which of the following is a characteristic of perfect competition?
A. One seller controls the entire market
B. There are many buyers and sellers, and products are homogeneous
C. Barriers to entry are high
D. There are only a few firms in the market
22. In microeconomics, what is the main focus of study?
A. The behavior of the economy as a whole
B. The behavior of individual consumers and firms
C. The distribution of national income
D. The interaction between countries
23. What is the definition of the "opportunity cost"?
A. The cost of the next best alternative foregone when making a decision
B. The total cost of production
C. The market price of a good
D. The money spent on advertising
24. What does the term "GDP" stand for?
A. Gross Domestic Price
B. General Domestic Product
C. Gross Domestic Product
D. Gross Domestic Proportion
25. In the context of a market economy, who determines the prices of goods and services?
A. Government
B. Large corporations
C. Buyers and sellers in the market
D. National central banks
26. What is the main aim of monetary policy?
A. To reduce government spending
B. To control inflation and stabilize the currency
C. To increase taxation
D. To regulate international trade
27. Which of the following best describes a "monopolistic competition" market structure?
A. A market with a single seller
B. A market with many firms selling differentiated products
C. A market with few firms
D. A market with identical products
28. What is the central problem of economics?
A. Unemployment
B. Scarcity of resources and the need for allocation
C. Inflation
D. Budget deficits
29. What does "inflation" lead to in an economy?
A. An increase in purchasing power
B. A decrease in the cost of goods
C. A decrease in the value of money
D. A reduction in government debt
30. Which of the following is NOT a function of money?
A. Medium of exchange
B. Store of value
C. Unit of account
D. Government regulation
31. What does the term "opportunity cost" mean?
A. The cost of the best alternative that is given up when making a decision
B. The total cost of production
C. The fixed cost of production
D. The cost of business expansion
32. Which of the following is a tool of fiscal policy?
A. Interest rates
B. Open market operations
C. Government taxation and spending
D. Money supply
33. What is the main function of a central bank?
A. To issue currency and regulate money supply
B. To manage government spending
C. To monitor inflation rates
D. To manage stock markets
34. What is a progressive tax system?
A. A tax system in which tax rates decrease as income increases
B. A tax system in which tax rates are constant regardless of income
C. A tax system in which tax rates increase as income increases
D. A tax system that only taxes businesses
35. In the context of supply and demand, what is an equilibrium price?
A. The price at which the quantity demanded equals the quantity supplied
B. The highest possible price consumers are willing to pay
C. The price that results in a shortage of goods
D. The price at which producers earn the most profit
36. What is a "public good" in economics?
A. A good that can only be consumed by one person at a time
B. A good that is rivalrous and exclusive
C. A good that is non-rivalrous and non-exclusive
D. A good that is only available in the private sector
37. What is meant by "economic efficiency"?
A. Maximizing output while minimizing costs
B. Maximizing the profits of firms
C. Ensuring fair wages for workers
D. Maximizing government revenue
38. What does the term "macroeconomics" refer to?
A. The study of individual markets
B. The study of the economy as a whole
C. The study of business operations
D. The study of consumer behavior
39. What is the definition of "unemployment rate"?
A. The percentage of the population that is unemployed
B. The percentage of the labor force that is unemployed
C. The total number of people without a job
D. The percentage of employed people in the economy
40. What does the "Law of Diminishing Returns" state?
A. The more inputs added, the greater the returns
B. The more inputs added, the smaller the increase in output
C. The more output produced, the higher the cost
D. Returns increase indefinitely with additional inputs
41. What is the primary objective of government intervention in markets?
A. To maximize profits for businesses
B. To correct market failures and promote social welfare
C. To reduce competition
D. To ensure high wages for all workers
42. Which of the following would most likely be an example of "price discrimination"?
A. A business offering a discount to senior citizens
B. A business charging the same price to all customers
C. A business selling a product at cost
D. A government-imposed price cap
43. Which of the following is an example of a "monetary policy" tool?
A. Taxation rates
B. Setting interest rates
C. Government spending
D. Public goods provision
44. What is a common consequence of inflation?
A. Decrease in the cost of living
B. Decrease in the value of money
C. Higher savings rates
D. Stable prices
45. What is meant by "economic growth"?
A. An increase in the overall price level of goods and services
B. An increase in the total output of an economy
C. An increase in government intervention
D. An increase in unemployment
46. What is the main purpose of "fiscal policy"?
A. To control the money supply
B. To adjust government spending and taxation to influence the economy
C. To regulate the stock market
D. To set interest rates
47. What does a "monopoly" market structure mean?
A. A market with many firms selling identical products
B. A market with one firm controlling the entire supply of a product
C. A market with a few large firms
D. A market with no barriers to entry
48. Which of the following is NOT a characteristic of oligopoly?
A. A few large firms control the market
B. Products are homogeneous
C. Barriers to entry are high
D. Firms are interdependent
49. What is the "Gini coefficient" used to measure?
A. Inflation rates
B. Income inequality
C. Economic growth
D. Unemployment rates
50. Which of the following is an example of "monetary policy"?
A. Changing tax rates
B. Changing the interest rate
C. Increasing government spending
D. Setting price controls
51. What is the "Law of Supply" in economics?
A. The quantity supplied increases as the price increases
B. The quantity supplied decreases as the price increases
C. The quantity supplied is independent of the price
D. Supply is determined only by government policies
52. What is "deflation"?
A. A decrease in the general price level
B. An increase in the money supply
C. A decrease in national income
D. A decrease in the value of money
53. What does "aggregate demand" refer to?
A. The total amount of goods and services produced in an economy
B. The total demand for all goods and services in an economy at a given price level
C. The total amount of money in circulation
D. The total amount of imports in an economy
54. Which of the following is the most common cause of inflation?
A. A decrease in aggregate demand
B. A decrease in wages
C. An increase in aggregate demand
D. A decrease in the money supply
55. Which of the following is an example of a "negative externality"?
A. Pollution from a factory
B. Education for all
C. A public park
D. A national highway
56. What is the purpose of an "interest rate" in the economy?
A. To encourage government spending
B. To control inflation by affecting borrowing and spending
C. To increase taxes
D. To determine the value of the currency
57. Which of the following is an example of a "public good"?
A. Clean air
B. A private school
C. A commercial television station
D. A paid gym membership
58. What is the main objective of "monetary policy"?
A. To regulate government spending
B. To control the supply of money in the economy and adjust interest rates
C. To increase taxes
D. To determine income redistribution policies
59. What is "stagflation"?
A. High inflation with high unemployment
B. Low inflation with high economic growth
C. High inflation with low unemployment
D. Low inflation and low unemployment
60. What is the "Phillips Curve" in economics?
A. It shows the relationship between inflation and unemployment
B. It shows the relationship between supply and demand
C. It shows the relationship between wages and prices
D. It shows the relationship between money supply and interest rates
61. What does "opportunity cost" refer to?
A. The cost of lost opportunities when making decisions
B. The amount spent on producing a product
C. The monetary cost of a good or service
D. The cost of technology used in production
62. What is the "law of demand"?
A. As the price of a good rises, the demand for it also rises
B. As the price of a good falls, the demand for it increases
C. As income increases, demand falls
D. As the price of a good decreases, the supply of it increases
63. Which of the following is NOT a characteristic of a "perfectly competitive market"?
A. Large number of buyers and sellers
B. Homogeneous products
C. Barriers to entry are low
D. Firms have significant control over prices
64. What does "marginal cost" refer to in economics?
A. The cost of producing one additional unit of a good or service
B. The total cost of production
C. The total revenue from the sale of a good
D. The average cost of producing goods
65. What is the primary goal of "macroeconomics"?
A. To analyze the decisions of individual consumers and firms
B. To study the overall functioning of the economy, including national income, inflation, and unemployment
C. To predict individual market behaviors
D. To measure government debt
66. Which of the following is a function of money?
A. Store of value
B. Unit of account
C. Medium of exchange
D. All of the above
67. What does the term "inflation" describe?
A. A decrease in the general price level
B. A rise in the general price level of goods and services
C. A decrease in the supply of money
D. A reduction in national output
68. Which economic system is characterized by government ownership of resources?
A. Capitalism
B. Socialism
C. Mixed economy
D. Traditional economy
69. Which of the following describes "monetary policy"?
A. Government decisions on taxation and spending
B. Central bank actions that affect the money supply and interest rates
C. Regulation of industries
D. Decisions regarding foreign exchange rates
70. What is the "money supply"?
A. The total amount of money available in an economy
B. The total wealth in a country
C. The total amount of credit in a market
D. The amount of money that the government prints each year
71. Which of the following is an example of a "positive externality"?
A. Pollution from a factory
B. Education for all
C. Noise from construction
D. Congestion in a busy city
72. What is the "consumer price index" (CPI) used to measure?
A. The level of unemployment
B. The inflation rate
C. The total national income
D. The supply of money in an economy
73. Which of the following is an example of "fiscal policy"?
A. Increasing government spending
B. Changing the interest rate
C. Printing more money
D. Controlling the money supply
74. What does "demand-pull inflation" refer to?
A. Inflation caused by an increase in the supply of goods
B. Inflation caused by an increase in demand for goods
C. Inflation caused by rising wages
D. Inflation caused by cost increases in production
75. What is the "Phillips curve" used to show?
A. The relationship between inflation and unemployment
B. The relationship between supply and demand
C. The relationship between income and consumption
D. The relationship between wages and profits
76. What is the "labor force participation rate"?
A. The percentage of the population that is employed
B. The percentage of working-age individuals either employed or actively seeking employment
C. The percentage of individuals who are self-employed
D. The percentage of individuals receiving unemployment benefits
77. What is "stagflation"?
A. High inflation and high unemployment
B. High inflation and low unemployment
C. Low inflation and high economic growth
D. Low inflation and low unemployment
78. What does "GDP" stand for?
A. Gross Domestic Product
B. General Development Product
C. General Domestic Product
D. Gross Developmental Product
79. Which of the following is a result of a "price ceiling"?
A. Shortages in the market
B. Excess supply of goods
C. A decrease in the cost of production
D. An increase in the demand for goods
80. Which of the following is the main characteristic of a "monopolistic competition" market structure?
A. A few large firms dominate the market
B. Firms sell differentiated products
C. No barriers to entry
D. Firms have complete control over prices
81. What does the "economic equilibrium" refer to?
A. The point where supply equals demand
B. The point where government spending matches taxation
C. The point where inflation and unemployment are both at their lowest
D. The point where national income reaches its highest level
82. Which of the following would cause a shift in the supply curve for a good?
A. A change in the price of the good
B. A change in the income of consumers
C. A change in the cost of production
D. A change in consumer preferences
83. What is the main goal of "development economics"?
A. To study the effects of international trade on developing countries
B. To focus on the economic growth of developing nations
C. To study global financial markets
D. To analyze the distribution of income in developed countries
84. Which of the following is a tool used in "fiscal policy"?
A. Open market operations
B. Taxation
C. Discount rate
D. Reserve requirements
85. What does "stagflation" describe in an economy?
A. A combination of low inflation and high unemployment
B. A combination of high inflation and high unemployment
C. A period of rising wages
D. A period of increasing GDP
86. Which of the following is the most commonly used method to measure national income?
A. The income approach
B. The expenditure approach
C. The labor market approach
D. The production approach
87. What is the main function of the central bank in an economy?
A. To regulate the stock market
B. To control the money supply and set interest rates
C. To collect taxes
D. To provide loans to businesses
88. What is a "monetary policy" used to control?
A. The supply of money and interest rates
B. Government spending and taxes
C. International trade agreements
D. The level of government debt
89. What is "market failure"?
A. When market prices are set by the government
B. When the allocation of goods and services is inefficient
C. When there is perfect competition in a market
D. When consumers do not have enough money to purchase goods
90. What is "economic globalization"?
A. The increased interdependence of world economies
B. The process of developing local economies
C. The nationalization of foreign-owned companies
D. The decrease in international trade
91. What is the definition of "perfect competition"?
A. A market where there is only one seller
B. A market where products are identical and many firms compete
C. A market with few firms that have market power
D. A market where government sets prices
92. What is the "law of diminishing returns"?
A. As more resources are added to production, output increases indefinitely
B. After a certain point, adding more inputs results in less additional output
C. As more workers are employed, wages increase
D. Total costs always increase with increased production
93. What is "aggregate demand"?
A. The total amount of money in the economy
B. The total demand for all goods and services in an economy
C. The demand for consumer goods only
D. The demand for labor in the economy
94. Which of the following is an example of a "public good"?
A. Private education
B. National defense
C. A private club
D. A toll road
95. What is "price discrimination"?
A. Selling the same product at different prices to different consumers
B. Selling products at a fixed price for everyone
C. Allowing consumers to set their own prices
D. Selling discounted products to customers who buy in bulk
96. What is the main objective of "monetary policy"?
A. To influence the level of government spending
B. To control the supply of money and interest rates
C. To determine the tax rates
D. To regulate foreign trade
97. What does "trade liberalization" refer to?
A. The process of restricting trade to protect domestic industries
B. The removal or reduction of trade barriers like tariffs and quotas
C. Increasing tariffs to protect local businesses
D. Nationalizing foreign companies
98. What is the "Phillips curve"?
A. A graph that shows the relationship between inflation and unemployment
B. A graph that shows the relationship between interest rates and economic growth
C. A graph that shows the level of government debt
D. A graph that shows changes in the money supply
99. Which of the following is considered a "macro" economic variable?
A. Individual household savings
B. National unemployment rate
C. Consumer spending on food
D. Business investment in technology
100. What is "gross domestic product" (GDP)?
A. The total value of all goods and services produced in a country in a given time period
B. The total value of all exports and imports
C. The total value of all assets owned by a country
D. The total government revenue generated in a given year
101. What is "GDP per capita" used to measure?
A. The average income of a country's citizens
B. The total national income of a country
C. The wealth of a country's businesses
D. The income inequality within a country
102. What does "inflation" refer to in economics?
A. A rise in the average price level of goods and services over time
B. A decrease in unemployment rates
C. A rise in the value of currency
D. A rise in government tax rates
103. Which of the following is a tool of monetary policy?
A. Taxation
B. Open market operations
C. Public spending
D. Price controls
104. What is "market equilibrium"?
A. The point where the price of goods is fixed by the government
B. The point where supply and demand are equal
C. The point where producers make the highest profit
D. The point where all goods are sold at market prices
105. What does the term "opportunity cost" refer to?
A. The benefit gained from choosing a particular option
B. The cost of the next best alternative foregone
C. The total cost incurred in producing goods
D. The cost associated with investment
106. What is the primary function of central banks?
A. To manage government revenue
B. To control inflation and regulate the money supply
C. To promote consumer spending
D. To set tax rates
107. What is a "tariff"?
A. A tax on imported goods
B. A fee for crossing international borders
C. A government subsidy for local producers
D. A system for controlling domestic prices
108. What is "externality" in economics?
A. A market factor that affects external trade
B. A cost or benefit from an economic activity experienced by a third party
C. The profit made from international business
D. A regulation imposed on foreign investment
109. What is the "balance of payments"?
A. The record of a country's international transactions
B. The amount of money a country has in its central bank
C. The total debt owed by the country
D. The value of a country’s exports over its imports
110. What does "comparative advantage" mean in international trade?
A. The ability to produce a good at a lower opportunity cost than others
B. The ability to produce a good using fewer resources than others
C. The ability to control prices in a foreign market
D. The ability to monopolize the production of a good
111. What is "recession" in economic terms?
A. A period of rising inflation
B. A period of declining GDP for two or more consecutive quarters
C. A period of high consumer spending
D. A period of increasing foreign investment
112. Which of the following best describes "price elasticity of demand"?
A. The responsiveness of quantity demanded to a change in price
B. The change in consumer income caused by price changes
C. The responsiveness of supply to changes in price
D. The demand for a product at different price levels
113. What is the "inflation rate"?
A. The increase in consumer spending
B. The percentage change in the average price level of goods and services
C. The rate at which wages are increasing
D. The level of government tax revenue
114. What is a "monopoly"?
A. A market with many sellers competing against each other
B. A market structure where one firm controls the entire supply of a product
C. A market with a few large firms
D. A market where prices are controlled by the government
115. What is the "Law of Supply"?
A. As price increases, the quantity supplied decreases
B. As price increases, the quantity supplied increases
C. As price decreases, the quantity supplied remains constant
D. As price decreases, the quantity supplied increases
116. What does "gross national product" (GNP) measure?
A. The total value of all goods and services produced by a country’s residents, both domestically and abroad
B. The total market value of goods and services produced within a country’s borders
C. The total income earned by a country’s government
D. The total value of imports and exports
117. What is "demand-pull inflation"?
A. Inflation caused by an increase in demand for goods and services
B. Inflation caused by a decrease in production
C. Inflation caused by an increase in supply of money
D. Inflation caused by higher costs of production
118. What is "Keynesian economics" focused on?
A. Government intervention to stabilize the economy during recessions
B. The self-regulating nature of markets
C. Long-term supply-side growth policies
D. Complete reliance on private sector
119. What is "stagflation"?
A. A period of high inflation and high unemployment
B. A period of low inflation and high economic growth
C. A period of high inflation and low economic growth
D. A period of rising wages and falling inflation
120. What is "supply-side economics" focused on?
A. Reducing government regulation and taxation to increase production and investment
B. Increasing government spending to stimulate demand
C. Providing direct financial support to consumers
D. Promoting international trade
121. Which of the following is a feature of a "perfectly competitive market"?
A. There are a few large firms dominating the market
B. Firms sell differentiated products
C. There is free entry and exit for firms
D. There are high barriers to entry
122. What is "monetary policy" primarily concerned with?
A. Controlling inflation and stabilizing the currency
B. Reducing government spending
C. Increasing taxation rates
D. Managing international trade relations
123. What is the "Laffer Curve" used to explain?
A. The relationship between tax rates and tax revenue
B. The effect of tariffs on imports
C. The relationship between inflation and unemployment
D. The effect of government spending on GDP
124. What does "consumer surplus" refer to?
A. The extra satisfaction consumers receive when they buy a product at a lower price than they were willing to pay
B. The total amount consumers spend on goods and services
C. The difference between production cost and selling price
D. The total revenue a firm receives from its customers
125. Which of the following is a function of money?
A. To act as a medium of exchange
B. To store value only
C. To act as a standard of deferred payment
D. All of the above
126. What is the "inflation rate" calculated from?
A. The change in the average price of a basket of goods and services
B. The change in consumer wages
C. The government’s spending on social welfare
D. The total amount of money printed by the central bank
127. What is "stagflation"?
A. A period of high inflation and high unemployment
B. A period of low inflation and high economic growth
C. A period of high inflation and low economic growth
D. A period of rising wages and falling inflation
128. What is the "Great Recession"?
A. A global economic downturn that started in 2007-2008
B. The economic depression of the 1930s
C. A period of high inflation in the 1970s
D. A financial crisis caused by international trade imbalances
129. What is "fiscal policy" concerned with?
A. Government spending and taxation
B. Regulation of money supply
C. Setting interest rates
D. Managing international trade agreements
130. What is "consumer price index" (CPI) used to measure?
A. The change in the average price level of goods and services purchased by consumers
B. The inflation rate in a given economy
C. The change in interest rates
D. The total value of national exports
131. What is "aggregate demand"?
A. The total demand for all goods and services in an economy at different price levels
B. The total supply of all goods and services in an economy
C. The total demand for a specific good
D. The total spending on government projects
132. Which of the following is a characteristic of a "monopolistic competition" market structure?
A. One firm controls the market
B. Many firms sell differentiated products
C. No barriers to entry and exit
D. There are very few firms
133. What is "GDP" (Gross Domestic Product)?
A. The total value of goods and services produced within a country’s borders
B. The total value of imports and exports
C. The value of all investments in the country
D. The wealth of the government
134. What is the "Marginal Utility" of a good?
A. The total satisfaction derived from consuming a good
B. The additional satisfaction gained from consuming one more unit of a good
C. The satisfaction derived from consuming a good over time
D. The satisfaction derived from consuming a combination of goods
135. What is "demand curve"?
A. A graph showing the relationship between the quantity of a good demanded and its price
B. A graph showing the relationship between the quantity of a good supplied and its price
C. A graph showing the cost of production
D. A graph showing government tax revenue
136. What does "price discrimination" mean?
A. Selling the same product at different prices to different consumers
B. Offering discounts to regular customers
C. Regulating the prices of goods in an economy
D. The government imposing price controls
137. What is "Oligopoly"?
A. A market structure where a few firms dominate the industry
B. A market with many small firms
C. A market with one firm controlling the industry
D. A market where firms sell identical products
138. What is "price elasticity of demand"?
A. The measure of how much the quantity demanded changes with a change in price
B. The measure of the quantity of a good supplied
C. The total value of money spent by consumers
D. The measurement of government tax revenue
139. What is "production possibility frontier" (PPF)?
A. A curve showing the maximum possible output combinations of two goods in an economy
B. A graph showing the distribution of wealth
C. A diagram representing the supply of labor
D. A graph of national income
140. What is "capital formation" in economics?
A. The process of increasing the stock of capital goods in an economy
B. The accumulation of personal wealth
C. The government's investment in public infrastructure
D. The process of increasing the population of a country
141. What is "market equilibrium"?
A. The point where supply equals demand
B. The point where production exceeds demand
C. The point where government sets prices
D. The point where supply is less than demand
142. What is "economic surplus"?
A. The sum of consumer surplus and producer surplus
B. The total profits earned by firms
C. The excess of government revenue over expenditures
D. The total amount of taxes collected by the government
143. What is "marginal cost"?
A. The cost of producing one additional unit of a good
B. The total cost of producing all units of a good
C. The fixed cost of production
D. The cost of raw materials used in production
144. What is "public goods" in economics?
A. Goods that are non-rivalrous and non-excludable
B. Goods that are produced only by the government
C. Goods that can only be consumed by individuals
D. Goods that are provided at a price by the government
145. What does "the law of demand" state?
A. As the price of a good rises, the quantity demanded decreases
B. As the price of a good rises, the quantity demanded increases
C. As the price of a good falls, the quantity supplied decreases
D. As income rises, the demand for inferior goods increases
145. What does "the law of demand" state?
A. As the price of a good rises, the quantity demanded decreases
B. As the price of a good rises, the quantity demanded increases
C. As the price of a good falls, the quantity supplied decreases
D. As income rises, the demand for inferior goods increases
146. What is "the paradox of thrift" in economics?
A. When everyone saves more, it can lead to a decrease in overall demand and economic growth
B. Increased spending leads to savings in the economy
C. The government can encourage savings through tax policies
D. Savings always result in more investment in the economy
147. What is the difference between "nominal GDP" and "real GDP"?
A. Nominal GDP is measured using current prices, while real GDP is adjusted for inflation
B. Real GDP is the value of all goods and services in an economy
C. Nominal GDP includes only government spending
D. Real GDP is not affected by changes in the price level
148. What is "price floor"?
A. A minimum price set by the government above the equilibrium price
B. A maximum price set by the government
C. The price that results from the forces of supply and demand
D. A price at which the market clears
149. What does "central bank" do in an economy?
A. Controls the money supply and interest rates
B. Sets taxes and government spending policies
C. Manages public debt and international trade
D. Coordinates economic policies with other countries
150. What is "opportunity cost" in economics?
A. The value of the next best alternative that is forgone when a choice is made
B. The amount of money spent on making a decision
C. The benefit of making a particular decision
D. The cost of acquiring resources in production