1. What is the primary focus of economics?
B. Allocating scarce resources
Economics primarily focuses on how individuals and societies allocate scarce resources to satisfy unlimited wants and needs. Studying human behavior, understanding history, and analyzing political systems can be part of economics, but the key focus is resource allocation.
2. Which of the following best describes microeconomics?
B. Analysis of individual consumer behavior
Microeconomics studies individual units such as consumers, firms, and markets, focusing on decision-making and resource allocation at a small scale.*
3. What does the term "opportunity cost" refer to in economics?
B. The cost of missed opportunities when a choice is made
Opportunity cost refers to the value of the next best alternative that is forgone when a decision is made.
4. Which economic approach focuses on maximizing utility and individual preferences?
C. Neoclassical economics
Neoclassical economics emphasizes rational behavior, where individuals maximize utility (satisfaction) and firms maximize profits, based on available resources and preferences.
5. Which method is commonly used to measure a country's economic performance?
B. Gross Domestic Product (GDP)
GDP measures the total value of goods and services produced within a country over a specific time, commonly used as an indicator of economic performance.
6. What is the primary role of a production possibility frontier (PPF) in economics?
B. Showing the maximum combination of goods a society can produce
The PPF illustrates the trade-offs and opportunity costs of producing different combinations of goods using limited resources.
7. In economics, what is meant by the term "inflation"?
C. A sustained increase in the general price level
Inflation is the continuous rise in the general price level of goods and services over time.*
8. **Which tool of economic analysis is used to represent the trade-offs between two goods or services?**
- **B. Production possibility curve**
*The PPC represents the trade-offs between the production of two goods, showing the maximum possible output combinations given limited resources.*
9. **What is the primary goal of fiscal policy in economics?**
- **C. Managing government revenue and spending**
*Fiscal policy involves the government's decisions on taxation and expenditure to influence the economy.*
10. **Which of the following is an example of a positive economic statement?**
- **C. Unemployment rate is 5% in the third quarter**
*Positive statements are objective and fact-based, as opposed to normative statements, which express opinions or value judgments.*
11. **If a country experiences a significant increase in its exports, what impact would this likely have on its balance of trade?**
- **D. Trade surplus would increase**
*An increase in exports generally improves a country's trade balance, leading to a higher trade surplus.*
12. **In a market economy, what typically determines the prices of goods and services?**
- **B. Consumer demand and supply interactions**
*In a market economy, prices are determined by the forces of supply and demand without central government intervention.*
13. **Suppose a government implements a policy to increase taxes on luxury goods. What is the expected outcome on consumer behavior towards these goods?**
- **B. Decreased demand for luxury goods**
*Higher taxes increase the price of luxury goods, reducing demand as they become more expensive for consumers.*
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BSED Major in Social Studies 2
Non-FictionThese materials provide lecture notes, quizzes, and resources for BSED Social Studies students, covering key topics such as history, geography, economics, and political science. Marjhon Mascardo shares a personal note, reflecting on his college jour...
