Economy

Question 1

What is the basic economic problem?

Answer 1

Scarcity of resources

Question 2

True or False: A market economy is based on supply and demand.

Answer 2

True

Question 3

Fill in the blank: The study of how people use resources to satisfy their needs is called ______.

Answer 3

Economics

Question 4

What does GDP stand for?

Answer 4

Gross Domestic Product

Question 5

Multiple Choice: Which of the following is a factor of production? A) Money B) Land C) Demand

Answer 5

B) Land

Question 6

What is a tariff?

Answer 6

A tax on imported goods

Question 7

True or False: Inflation leads to an increase in the purchasing power of money.

Answer 7

False

Question 8

What is the term for a market structure with many firms competing?

Answer 8

Perfect competition

Question 9

Fill in the blank: A ______ is a person who starts a new business.

Answer 9

Entrepreneur

Question 10

Multiple Choice: Which of the following is NOT a type of unemployment? A) Cyclical B) Seasonal C) Permanent

Answer 10

C) Permanent

Question 11

What does the law of demand state?

Answer 11

As price decreases, quantity demanded increases

Question 12

True or False: A monopoly is a market structure with only one seller.

Answer 12

True

Question 13

What is the purpose of advertising?

Answer 13

To promote products and influence consumer choices

Question 14

Fill in the blank: A ______ is an economic system where the government makes all decisions.

Answer 14

Command economy

Question 15

Multiple Choice: What is the main goal of a business? A) To help the community B) To maximize profit C) To create jobs

Answer 15

B) To maximize profit

Question 16

What is the term for the total value of goods and services produced in a country?

Answer 16

National output

Question 17

True or False: Consumer sovereignty means that producers dictate what is produced.

Answer 17

False

Question 18

What is a budget?

Answer 18

A plan for managing income and expenses

Question 19

Fill in the blank: The ______ is the part of the economy that includes all businesses.

Answer 19

Industry

Question 20

Multiple Choice: Which of the following is an example of a public good? A) A park B) A smartphone C) A restaurant

Answer 20

A) A park

Question 21

What is the role of the Central Bank?

Answer 21

To manage a country’s currency and monetary policy

Question 22

True or False: Economic growth is measured by an increase in GDP.

Answer 22

True

Question 23

What is the term for the additional cost of producing one more unit?

Answer 23

Marginal cost

Question 24

Fill in the blank: The ______ curve shows the relationship between price and quantity supplied.

Answer 24

Supply

Question 25

Multiple Choice: Which of the following is a characteristic of a mixed economy? A) No government intervention B) Combination of market and command economy C) Complete government control

Answer 25

B) Combination of market and command economy

Question 26

What is the definition of opportunity cost?

Answer 26

The cost of the next best alternative foregone