Economics Studying

What is opportunity cost?

• The cost of a product you buy

• The value of the next best alternative you give up

• The price of a good in the market

• The amount of money you save

What should you consider when making a decision based on opportunity cost?

• The option with the least effort

• The option with the most value

• The option with the highest cost

• The option with the most popularity

When evaluating opportunity cost, which of the following should you consider?

• Only the costs of the options

• Only the benefits of the options

• Both the benefits and costs of the options

• None of the above

What does GDP stand for?

• Gross Domestic Product

• Global Domestic Product

• General Domestic Product

• Gross Development Product

What happens when a country imports more than it exports?

• It has a trade deficit

• It has a trade surplus

• It has no trade balance

• It experiences economic growth

What does supply refer to in economics?

• The amount of a product consumers want to buy

• The amount of a product producers are willing to sell

• The price of a product in the market

• The demand for a product

What is the equilibrium price?

• The price where supply exceeds demand

• The price where demand exceeds supply

• The price where supply matches demand

• The price where supply and demand are unrelated

What happens if the price is above the equilibrium price?

• There will be a shortage

• There will be a surplus

• The market will remain stable

• The demand will increase

What effect does a new technology that makes production cheaper have on supply?

• Supply will decrease

• Supply will increase

• Supply will remain the same

• Supply will become unpredictable

What is the relationship between price and quantity demanded according to the Law of Demand?

• Direct relationship

• Inverse relationship

• No relationship

• Unpredictable relationship