QUIZ

The law of diminishing marginal utility states that as consumption of a good increases, the additional satisfaction from each extra unit also increases.

• TRUE

• FALSE

A perfectly competitive market consists of many buyers and sellers, with no single entity having control over prices.

• TRUE

• FALSE

In a command economy, the forces of supply and demand primarily determine production and pricing.

• TRUE

• FALSE

GDP (Gross Domestic Product) includes both final and intermediate goods to measure economic performance.

• TRUE

• FALSE

Inflation refers to a sustained decrease in the general price level of goods and services.

• TRUE

• FALSE

A country's national debt is the total amount it owes to creditors over time.

• TRUE

• FALSE

The Phillips Curve illustrates the inverse relationship between inflation and unemployment in the short run.

• TRUE

• FALSE

Fiscal policy involves changes in the money supply and interest rates to influence economic activity.

• TRUE

• FALSE

A monopoly exists when a single firm dominates the market without close substitutes.

• TRUE

• FALSE

A recession is typically defined as two consecutive quarters of negative GDP growth.

• TRUE

• FALSE