Economic Concepts Quiz

What is the definition of 'inflation'?

• A type of tax on income

• An increase in the general price level of goods and services

• A decrease in the general price level of goods and services

• A measure of the total value of goods produced

What does 'GDP' stand for?

• Gross Domestic Profit

• Global Debt Policy

• General Development Plan

• Gross Domestic Product

What is 'collective goods'?

• Goods that are sold in bulk

• Goods that are only available to certain individuals

• Goods provided by the government that everyone can use

• Goods that are produced by private companies

What is 'monopoly'?

• A market structure with no sellers

• A market structure with few sellers

• A market structure with only one seller

• A market structure with many sellers

What does 'budget deficit' mean?

• When there is no budget

• When income exceeds expenditures

• When expenditures exceed income

• When the budget is balanced

What is 'direct taxation'?

• Taxes on capital gains

• Taxes paid directly to the government

• Taxes paid indirectly through product prices

• Taxes on imported goods

What is 'frictional unemployment'?

• Temporary unemployment while transitioning between jobs

• Unemployment due to economic downturns

• Unemployment due to seasonal work

• Unemployment caused by technological changes

What is 'export subsidy'?

• A fee for exporting products

• A financial aid given to domestic companies to promote exports

• A tax on exported goods

• A discount on imported goods

What does 'social security' refer to?

• A program for international aid

• A type of insurance for businesses

• A system of government programs that provide financial assistance

• A tax on social services

What is 'market equilibrium'?

• When prices are fixed

• When supply and demand are equal

• When demand exceeds supply

• When supply exceeds demand