Economics Exam : Multiple Choice
Questions ACTUAL QUESTIONS AND
CORRECT ANSWERS
Fundamental problem of economics? - Correct answers✔✔Scarcity
Economics is primarily concerned with... - Correct answers✔✔Allocating limited resources
Opportunity cost is... - Correct answers✔✔The benefit given up when choosing one alternative
over another
Factor of production? - Correct answers✔✔Capital
Entrepreneur - Correct answers✔✔A person who organizes resources to produce goods
Law of demand - Correct answers✔✔As price increases, demand decreases
Unemployment rate - Correct answers✔✔Percentage of labor force without a job
Not counted in GDP - Correct answers✔✔Used car sales
CPI (Consumer Price Index) - Correct answers✔✔Used to measure inflation
Free trade - Correct answers✔✔No restrictions on international trade
, Benefit of international trade - Correct answers✔✔Greater efficiency
Comparative advantage - Correct answers✔✔Can produce a good at a lower opportunity cost
NAFTA - Correct answers✔✔An agreement between U.S., Canada, Mexico
Function of money - Correct answers✔✔Medium of exchange
Federal Reserve System - Correct answers✔✔Controlling monetary policy
Inflation - Correct answers✔✔General rise in prices
Gross Domestic Product (GDP) - Correct answers✔✔Measures the economic performance of a
country
National happiness - Correct answers✔✔A measure of the overall well-being and satisfaction of
a country's citizens.
Total government spending - Correct answers✔✔The total amount of money that the government
spends on goods, services, and public projects.
Value of all goods and services produced - Correct answers✔✔The total monetary value of all
finished goods and services produced within a country's borders in a specific time period.
Questions ACTUAL QUESTIONS AND
CORRECT ANSWERS
Fundamental problem of economics? - Correct answers✔✔Scarcity
Economics is primarily concerned with... - Correct answers✔✔Allocating limited resources
Opportunity cost is... - Correct answers✔✔The benefit given up when choosing one alternative
over another
Factor of production? - Correct answers✔✔Capital
Entrepreneur - Correct answers✔✔A person who organizes resources to produce goods
Law of demand - Correct answers✔✔As price increases, demand decreases
Unemployment rate - Correct answers✔✔Percentage of labor force without a job
Not counted in GDP - Correct answers✔✔Used car sales
CPI (Consumer Price Index) - Correct answers✔✔Used to measure inflation
Free trade - Correct answers✔✔No restrictions on international trade
, Benefit of international trade - Correct answers✔✔Greater efficiency
Comparative advantage - Correct answers✔✔Can produce a good at a lower opportunity cost
NAFTA - Correct answers✔✔An agreement between U.S., Canada, Mexico
Function of money - Correct answers✔✔Medium of exchange
Federal Reserve System - Correct answers✔✔Controlling monetary policy
Inflation - Correct answers✔✔General rise in prices
Gross Domestic Product (GDP) - Correct answers✔✔Measures the economic performance of a
country
National happiness - Correct answers✔✔A measure of the overall well-being and satisfaction of
a country's citizens.
Total government spending - Correct answers✔✔The total amount of money that the government
spends on goods, services, and public projects.
Value of all goods and services produced - Correct answers✔✔The total monetary value of all
finished goods and services produced within a country's borders in a specific time period.
