- 1. Economics is a social science that studies how individuals, governments, firms, and societies allocate resources to satisfy their wants and needs. It explores concepts of scarcity, opportunity cost, supply and demand, production and consumption, and the distribution of wealth. Economists analyze economic data and trends to understand and predict how economic systems work and how policy decisions can impact outcomes such as inflation, unemployment, and economic growth. The field of economics encompasses various subfields such as macroeconomics, microeconomics, international economics, and development economics, offering insights into the complex dynamics of markets, trade, finance, and social welfare.
What is economics primarily concerned with?
A) Historical events
B) Allocation of resources
C) Weather patterns
D) Sports statistics
- 2. Which economic system is characterized by private ownership of resources and a market economy?
A) Socialism
B) Feudalism
C) Communism
D) Capitalism
- 3. What is the term used for the total value of all goods and services produced in a country in a given period?
A) Inflation Rate
B) Gross Domestic Product (GDP)
C) Consumer Price Index (CPI)
D) Trade Deficit
- 4. What is the study of how individuals, businesses, and governments make choices to allocate limited resources?
A) Microeconomics
B) Sociology
C) Macroeconomics
D) Political Science
- 5. Which economic concept refers to the total satisfaction received from consuming a good or service?
A) Utility
B) Equilibrium
C) Scarcity
D) Subsidy
- 6. What is the term used for a situation where there are not enough resources to produce everything that people need and want?
A) Scarcity
B) Surplus
C) Trade-off
D) Monopoly
- 7. What does the term 'opportunity cost' refer to in economics?
A) Income earned from a job
B) The total value of all goods produced
C) The price of goods and services
D) The next best alternative given up when a decision is made
- 8. What is an economic good that is used to produce other goods or services called?
A) Normal good
B) Inferior good
C) Consumer good
D) Capital
- 9. Which type of market structure is characterized by a single seller of a product with no close substitutes?
A) Oligopoly
B) Perfect competition
C) Monopoly
D) Monopolistic competition
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