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