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