FBLA Economics Test

What is the primary economic goal of a market economy?

• Equity

• Efficiency

• Stability

• Growth

Which of the following is NOT a factor of production?

• Labor

• Land

• Money

• Capital

In economics, what does GDP stand for?

• Gross Domestic Product

• General Development Policy

• Goods Distribution Program

• Generalized Demand Projection

What term refers to the total value of all goods and services produced within a country in a given period of time?

• GNP (Gross National Product)

• GNI (Gross National Income)

• GDP (Gross Domestic Product)

• CPI (Consumer Price Index)

Which economic system relies on government control and ownership of resources and means of production?

• Capitalism

• Socialism

• Mixed economy

• Communism

In economics, what does the term "opportunity cost" refer to?

• The cost of purchasing goods and services

• The cost of producing goods and services

• The cost of making a decision in terms of the next best alternative foregone

• The cost of investing in capital

Which of the following is a fiscal policy tool used to stimulate economic growth during a recession?

• Decreasing government spending

• Decreasing taxes

• Decreasing the money supply

• Increasing interest rates

What term describes a situation where the quantity supplied exceeds the quantity demanded at a given price?

• Shortage

• Surplus

• Equilibrium

• Monopoly

The study of how people and societies use limited resources to satisfy unlimited wants is known as:

• Sociology

• Psychology

• Economics

• Anthropology

Which of the following is NOT a characteristic of monopolistic competition?

• Barriers to entry

• Product differentiation

• Many buyers and sellers

• Non-price competition