GED Economics Mastery Quiz

What happens to the price of a good when there is an increase in demand, assuming supply remains constant?

• The price decreases.

• The price increases.

• The price remains the same.

• The price initially increases, then decreases.

Which market structure is characterized by a single seller and many buyers?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

What is the primary focus of macroeconomics?

• The behavior of individual households and firms

• The decision-making processes of individual consumers

• The performance and behavior of an economy as a whole

• The study of how to allocate resources in the most efficient way

Which of the following is a key concept in microeconomics?

• Inflation rates

• National unemployment levels

• Consumer choice

• Fiscal policy

What does the term "comparative advantage" refer to in international trade?

• The ability of a country to produce a good at a lower opportunity cost than another country

• The ability of a country to produce more of a good than another country using the same amount of resources

• The advantage that wealthy countries have over poor countries in trade negotiations

• The advantage that comes from countries using their most abundant resources for production

What is the main goal of fiscal policy?

• To control the money supply and interest rates

• To regulate the stock market

• To influence the economy through government spending and taxation

• To ensure the stability of the banking system

In the context of supply and demand, what is a surplus?

• When demand exceeds supply

• When supply exceeds demand

• When the price is set too high for consumers to afford

• When the market is in perfect equilibrium

Which of the following is an example of a barrier to entry in a market?

• A high demand for the product

• A patent

• A large number of suppliers

• Low consumer interest

What does GDP stand for in macroeconomics?

• General Demand and Production

• Gross Domestic Product

• Government Debt Percentage

• Gross Domestic Policy

What is the law of demand?

• As the price of a good increases, the quantity demanded decreases, ceteris paribus.

• As the price of a good decreases, the quantity demanded remains unchanged.

• As the price of a good increases, the quantity demanded also increases.

• As the price of a good decreases, the quantity supplied decreases.