The Excellency ( Economics)

What does the term "opportunity cost" refer to?

• The total cost of production

• The cost of capital

• The cost of alternatives forgone

• The cost of raw materials

Answer explanation

Scarcity refers to:

• Limited resources to satisfy unlimited wants

• Unemployment in an economy

• The cost of raw materials

• Unlimited resources to satisfy unlimited wants

Which of the following is NOT a factor of production?

• Money

• Land

• Capital

• Labor

The term "economics" is best defined as:

• The study of how people make money

• The study of government policies

• The study of human behavior in relation to the allocation of scarce resources

• The study of political science

What does the law of demand state?

• As price decreases, quantity demanded decreases

• Price and demand are independent

• As price increases, quantity demanded increases

• As price decreases, quantity demanded increases

In a perfectly competitive market, firms are:

• Price setters

• Price takers

• Oligopolies

• Monopolies

Which of the following is a characteristic of a monopoly?

• Many firms producing identical products

• One firm dominates the entire market

• Firms have no control over prices

• There is free entry and exit of firms

Which of the following describes structural unemployment?

• Unemployment caused by workers' lack of skills

• Unemployment due to changes in the structure of the economy, such as technological change

• Unemployment caused by seasonal demand for labor

• Unemployment caused by fluctuations in the economy

Which of the following is a major cause of inflation?

• An increase in the supply of labor

• A reduction in government spending

• A decrease in the demand for goods and services

• An increase in the supply of money

A situation where workers are actively seeking jobs but cannot find employment is called:

• Cyclical unemployment

• Frictional unemployment

• Structural unemployment

• Seasonal unemployment