Elements Of Pure Economics, Or, The Theory Of Social Wealth
  • 1. Who is considered the father of modern economics?
A) John Maynard Keynes
B) Adam Smith
C) Karl Marx
D) David Ricardo
  • 2. Which of the following is a basic economic problem?
A) Inequality
B) Scarcity
C) Inflation
D) Surplus
  • 3. What does GDP stand for?
A) Gross Domestic Product
B) Gross Domestic Purpose
C) General Debt Projection
D) Global Development Plan
  • 4. Which term refers to the benefit gained from the next best alternative forgone?
A) Marginal cost
B) Fixed cost
C) Sunk cost
D) Opportunity cost
  • 5. What does the law of demand state?
A) Price and quantity demanded are inversely related
B) Supply increases as demand decreases
C) Demand is constant regardless of price
D) Price and quantity demanded are directly related
  • 6. Which concept refers to the additional benefit derived from consuming one more unit?
A) Total utility
B) Marginal utility
C) Fixed utility
D) Average cost
  • 7. Which market structure is characterized by a single seller?
A) Monopoly
B) Perfect competition
C) Monopolistic competition
D) Oligopoly
  • 8. What are the three main factors of production?
A) Capital, technology, entrepreneurship
B) Money, resources, labor
C) Land, labor, capital
D) Goods, services, trade
  • 9. What does 'monetary policy' refer to?
A) Government spending on public services
B) Regulation of fiscal policies
C) Control of the money supply and interest rates
D) Trade agreements with other nations
  • 10. Who proposed the theory of comparative advantage?
A) David Ricardo
B) Milton Friedman
C) Adam Smith
D) John Stuart Mill
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