Economics Qualification related questions

What is economics primarily concerned with? A) Social justice B) Resource allocation C) Political ideology D) Historical events Answer: B) Resource allocation Which of the following is a macroeconomic concept? A) Individual consumer behavior B) Market equilibrium C) National income D) Price elasticity of demand Answer: C) National income In economics, what does “CPI” stand for? A) Consumer Price Index B) Cost-Per-Income C) Central Pricing Indicator D) Currency Power Index Answer: A) Consumer Price Index Which economic system relies heavily on market forces and minimal government intervention? A) Capitalism B) Socialism C) Communism D) Mixed economy Answer: A) Capitalism What is the study of how individuals and societies allocate resources and make choices to satisfy unlimited wants with limited resources called? A) Anthropology B) Sociology C) Economics D) Psychology Answer: C) Economics Which of the following is a key characteristic of a perfectly competitive market? A) Many buyers and one seller B) Few buyers and many sellers C) Many buyers and many sellers D) One buyer and many sellers Answer: C) Many buyers and many sellers What does the term “GDP” stand for in economics? A) Gross Domestic Product B) Gross Disposable Profit C) Global Development Program D) Government Debt Policy Answer: A) Gross Domestic Product Which economic theory is associated with the idea that governments should play a minimal role in the economy and that markets should be free from interference? A) Keynesian economics B) Monetarism C) Neoclassical economics D) Laissez-faire economics Answer: D) Laissez-faire economics What is the term for the total value of goods and services produced within a country’s borders in a specific time period? A) GNP (Gross National Product) B) GDP (Gross Domestic Product) C) GINI (Gini Coefficient) D) HDI (Human Development Index) Answer: B) GDP (Gross Domestic Product) In economics, what does “PPP” stand for? A) Purchasing Power Paradox B) Perpetual Pricing Policy C) Public-Private Partnership D) Purchasing Power Parity Answer: D) Purchasing Power Parity Which of the following is considered a factor of production in economics? A) Money B) Labor C) Stocks D) Bonds Answer: B) Labor What is the term for the increase in the general price level of goods and services over time? A) Deflation B) Recession C) Inflation D) Stagflation Answer: C) Inflation Which economic concept refers to the total value of all final goods and services produced within a country in a specific period, typically a year? A) Gross National Product (GNP) B) Gross Domestic Product (GDP) C) National Income D) Consumer Price Index (CPI) Answer: B) Gross Domestic Product (GDP) What is the term for the rate at which one currency can be exchanged for another? A) Interest rate B) Exchange rate C) Inflation rate D) Growth rate Answer: B) Exchange rate Which of the following is an example of a fiscal policy tool used by governments to stimulate economic growth? A) Decreasing government spending B) Increasing taxes C) Decreasing interest rates D) Increasing government spending Answer: D) Increasing government spending What is the term for a situation where the economy experiences both high inflation and high unemployment? A) Stagflation B) Hyperinflation C) Deflation D) Recession Answer: A) Stagflation Which economic concept refers to the measure of responsiveness of quantity demanded to a change in price? A) Elasticity B) Marginal Utility C) Diminishing Returns D) Comparative Advantage Answer: A) Elasticity What is the term for the percentage of the labor force that is unemployed and actively seeking employment? A) Inflation rate B) Unemployment rate C) Participation rate D) Labor force rate Answer: B) Unemployment rate Which of the following is an example of a regressive tax? A) Property tax B) Sales tax C) Income tax D) Corporate tax Answer: B) Sales tax What is the term for the total value of a firm’s output minus the value of the inputs it has purchased from others? A) Gross profit B) Net profit C) Operating profit D) Economic profit Answer: D) Economic profit Which economic theory focuses on the relationship between the production of goods and services and the factors of production? A) Classical economics B) Keynesian economics C) Monetarism D) Neoclassical economics Answer: D) Neoclassical economics What does the term “opportunity cost” refer to in economics? A) The cost of producing an additional unit of a good or service B) The cost of goods and services in different countries C) The cost of choosing one alternative over another D) The cost of labor in the production process Answer: C) The cost of choosing one alternative over another Which of the following is a characteristic of a command economy? A) Decentralized decision-making B) Government ownership of resources and production C) Market-driven allocation of resources D) Private ownership of businesses Answer: B) Government ownership of resources and production What is the term for the measure of the responsiveness of quantity demanded to a change in income? A) Elasticity of demand B) Income elasticity C) Price elasticity D) Cross elasticity Answer: B) Income elasticity Which of the following is a characteristic of monopolistic competition? A) Many buyers and one seller B) Few buyers and many sellers C) Many buyers and many sellers D) One buyer and many sellers Answer: C) Many buyers and many sellers What is the term for the measure of how well resources are used to produce goods and services in an economy? A) Productivity B) Efficiency C) Profitability D) Competitiveness Answer: A) Productivity Which of the following is an example of a positive externality? A) Pollution from a factory B) Education benefiting society C) Traffic congestion D) Noise pollution from construction Answer: B) Education benefiting society What is the term for the increase in the quantity of goods and services produced per unit of input over time? A) Inflation B) Deflation C) Productivity growth D) Stagnation Answer: C) Productivity growth Which of the following is a characteristic of oligopoly? A) Many buyers and one seller B) Few buyers and many sellers C) Few buyers and few sellers D) One buyer and many sellers Answer: C) Few buyers and few sellers What does the term “monetary policy” refer to in economics? A) Government policies related to taxes and spending B) Policies related to international trade and tariffs C) Policies related to the supply of money and interest rates D) Policies related to environmental regulations Answer: C) Policies related to the supply of money and interest ratesWhich of the following is a characteristic of a market economy? A) Centralized decision-making by the government B) Private ownership of resources and production C) Limited consumer choice D) Equal distribution of wealth Answer: B) Private ownership of resources and production What is the term for the measure of how much consumers’ buying habits change when prices change? A) Elasticity B) Marginal Utility C) Price Discrimination D) Substitution Effect Answer: A) Elasticity Which of the following is a characteristic of a planned economy? A) Market-driven allocation of resources B) Decentralized decision-making by households and firms C) Government control over resources and production D) Private ownership of businesses Answer: C) Government control over resources and production What is the term for the process of combining two or more goods or services to create something new and more valuable? A) Productivity B) Innovation C) Investment D) Diversification Answer: B) Innovation Which of the following is a characteristic of a mixed economy? A) Private ownership only B) Public ownership only C) Both private and public ownership D) No ownership Answer: C) Both private and public ownership What does the term “comparative advantage” refer to in economics? A) The ability to produce more of a good or service than another country B) The ability to produce a good or service at a lower opportunity cost than another country C) The ability to produce a good or service at a higher price than another country D) The ability to produce a good or service without using resources Answer: B) The ability to produce a good or service at a lower opportunity cost than another country Which of the following is an example of a negative externality? A) Public transportation reducing traffic congestion B) Pollution from a factory harming nearby residents’ health C) Education benefiting society D) Research and development leading to new innovations Answer: B) Pollution from a factory harming nearby residents’ health What is the term for the measure of how much quantity demanded responds to a change in price? A) Price elasticity of supply B) Income elasticity of demand C) Price elasticity of demand D) Cross elasticity of demand Answer: C) Price elasticity of demand Which of the following is a characteristic of perfect competition? A) Many buyers and one seller B) Few buyers and many sellers C) Many buyers and many sellers D) One buyer and many sellers Answer: C) Many buyers and many sellers What is the term for the measure of how much quantity supplied responds to a change in price? A) Price elasticity of supply B) Income elasticity of demand C) Price elasticity of demand D) Cross elasticity of demand Answer: A) Price elasticity of supply Which of the following is an example of a public good? A) Private school education B) Public park C) Cable television service D) Movie theater tickets Answer: B) Public park What is the term for the situation where an individual or group consumes a good or service without paying for it? A) Free market B) Subsidy C) Free rider problem D) Public good Answer: C) Free rider problem Which of the following is a characteristic of monopolies? A) Many buyers and one seller B) Few buyers and many sellers C) Few buyers and few sellers D) One buyer and many sellers Answer: A) Many buyers and one seller What is the term for the measure of the overall level of prices in the economy? A) Unemployment rate B) Inflation rate C) Interest rate D) Exchange rate Answer: B) Inflation rate Which of the following is an example of a factor of production? A) Money B) Goods C) Services D) Labor Answer: D) Labor What is the term for the total value of goods and services produced by a country in a given period, including income from abroad? 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) Which of the following is an example of a financial intermediary? A) Bank B) Manufacturer C) Retailer D) Service provider Answer: A) Bank What is the term for the measure of the percentage change in quantity demanded of one good in response to a percentage change in the price of another good? A) Price elasticity of supply B) Income elasticity of demand C) Price elasticity of demand D) Cross elasticity of demand Answer: D) Cross elasticity of demand Which of the following is an example of capital in economics? A) Money B) Land C) Goods D) Machinery Answer: D) Machinery What is the term for the measure of the total value of goods and services produced within a country’s borders in a specific time period, adjusted for inflation? A) Gross National Product (GNP) B) Gross Domestic Product (GDP) C) Net National Product (NNP) D) Real Gross Domestic Product (Real GDP) Answer: D) Real Gross Domestic Product (Real GDP)