240 Questions
What is the main reason for the economic problem?
Limited resources
What is the primary focus of microeconomics?
The decisions of individuals and firms
What is the core challenge in economics?
Scarcity
What is one of the primary economic questions?
What to produce?
What branch of economics studies the overall functioning of an economy?
Macroeconomics
What is the fundamental economic problem?
How to allocate limited resources to satisfy unlimited wants and needs
What is the main reason for the difference between human wants and available resources?
Human wants are limitless, yet resources are limited
What is one of the economic decisions that individuals, governments, and societies must make?
Balancing the fulfillment of diverse needs against available financial capacities
What is the focus of International Economics?
International trade and finance
What is the primary challenge in economic research?
Human behavior and unpredictability
What is the main purpose of economic models?
To understand and predict economic interactions and outcomes
What is the definition of opportunity cost?
The benefit of the next best alternative
What is the primary function of entrepreneurship in the economy?
To combine the factors of production to create goods and services
What is the difference between absolute and relative scarcity?
Absolute scarcity is when resources are insufficient, while relative scarcity is when resources are sufficient but inaccessible
What sector of the economy involves the extraction of natural resources?
Primary Sector
What is the term for goods that are consumed immediately or shortly after purchase?
Non-durable Goods
What is the focus of Developmental Economics?
Policies promoting economic development in less developed countries
What is the difference between positive and normative economics?
Positive economics is value-neutral, while normative economics involves value judgments
What is the portion of income available for spending or saving after taxes?
Disposable Income
What is the main goal of sustainable economic development?
To promote economic growth without harming the environment or human health
What is the main approach to research in economics?
A systematic approach using both deductive and inductive reasoning
Which sector of the economy provides services rather than goods?
Tertiary Sector
What is the term for registered businesses whose activities are measured in official statistics like GDP?
Formal Sector
Who are the main consumers of goods and services in the economy?
Households
What is the phase of the business cycle characterized by high economic activity and increasing employment?
Prosperity
Which of the following is an exogenous reason for business cycles?
Natural disasters
What is the total demand for goods and services in the economy?
Aggregate Demand
What is the impact of business cycles on economically vulnerable populations?
They suffer the most during economic downturns
What is the primary purpose of understanding business cycles?
To anticipate economic changes and implement measures to mitigate adverse effects
What is the phase of the business cycle characterized by a gradual improvement in economic conditions?
Recovery
What is the impact of business cycles on employment?
Job creation increases during booms
Which of the following is an endogenous reason for business cycles?
Fluctuations in investment
What is the primary function of financial institutions in the economy?
To facilitate savings and provide loans
What is the main difference between the Goods Market and the Factor Market?
The Goods Market is for goods and services, while the Factor Market is for factors of production
What is the formula for calculating GDP using the Expenditure Approach?
GDP = C + I + G + (X - M)
What is the main limitation of GDP as a measure of economic activity?
It does not account for the distribution of income among the population
What is the main difference between GDP and GNI?
GDP is a measure of domestic production, while GNI is a measure of national income
What is the purpose of calculating per capita income?
To understand the economic well-being of the average citizen
What is the main characteristic of a leading indicator in a business cycle?
It signals future economic changes before they occur
What is the purpose of using economic indicators in business cycles?
To analyze changes in the business cycle
What branch of economics deals with the economic activities of government and its role in the economy?
Public Sector Economics
What is the primary goal of economic models?
To understand and predict economic phenomena
What type of scarcity occurs when resources are insufficient to produce a good despite its availability?
Absolute Scarcity
What is the approach to research in economics that involves value judgments and subjective perspectives?
Normative Economics
What is the term for the foregone benefit of the next best alternative when a choice is made?
Opportunity Cost
Which of the following is NOT a branch of economics?
Developmental Biology
What is the primary challenge in economic research?
Dealing with human behaviors that are diverse and difficult to predict
What type of goods are naturally available without cost?
Free Goods
Which sector of the economy involves manufacturing and processing activities?
Secondary Sector
What is the term for individuals who combine the other three factors of production to create goods and services?
Entrepreneur
Which of the following is an example of a durable good?
Vehicle
What is the term for the portion of income available for spending or saving after taxes?
Disposable Income
Which sector of the economy provides services rather than goods?
Tertiary Sector
What is the term for businesses owned by individuals or corporations?
Private Sector
What is the main goal of sustainable economic development?
Economic growth without depleting natural resources or harming human and environmental health
Which of the following is a key component of sustainable economic development?
Both A and B
What is the phase of the business cycle characterized by decreasing economic growth, output, and employment?
Recession
What are the external factors that influence the economy?
Natural disasters, political events, foreign trade dynamics, psychological factors, and monetary policies
What is the total supply of goods and services available in the economy?
Aggregate Supply
Which group is disproportionately affected by business cycles?
Economically vulnerable populations
What is the main focus of economics as a social science?
The study of how individuals, businesses, governments, and other organizations make decisions to allocate scarce resources
What is the primary purpose of understanding business cycles?
To anticipate economic changes and implement measures to mitigate the adverse effects
What is the impact of business cycles on price levels?
It tends to rise during expansion and stabilize or fall during contractions
What is the reason why human wants are not fulfilled?
Because human wants are limitless, yet resources are limited
What is the role of government and social services during economic downturns?
To support economically vulnerable populations
Which of the following is NOT a primary economic question?
What is the weather like today?
What is the main difference between microeconomics and macroeconomics?
Microeconomics focuses on individual decisions, while macroeconomics focuses on the overall functioning of an economy
What is the phase of the business cycle characterized by high economic activity, increasing employment, wages, and standards of living?
Prosperity
What do individuals, governments, and societies need to make decisions about?
How to allocate limited resources
What is the main challenge in economics?
The dichotomy between infinite desires and finite means
What is the purpose of answering the primary economic questions?
To efficiently distribute limited resources
Which branch of economics focuses on the market interactions between individuals and firms?
Microeconomics
What is the primary function of the Foreign Sector in the economy?
To engage in trade, affecting imports and exports
Which of the following represents the movement of goods and services?
Real Flow
What is the total market value of all final goods and services produced within a country's borders in each period?
Gross Domestic Product (GDP)
Which approach to calculating GDP involves summing up all outputs produced?
Product Approach
What is the main limitation of GDP as a measure of economic activity?
It ignores wealth distribution
What is the primary function of leading indicators in business cycles?
To signal future economic changes before they occur
What type of economic indicator moves in the same direction as the economy?
Procyclical indicator
What is the purpose of calculating per capita income?
To provide an average income per person
What is the primary function of entrepreneurship in an economy?
To combine the other factors of production
What is the difference between durable and semi-durable goods?
Durable goods last longer, while semi-durable goods have a shorter lifespan
What is the primary focus of sustainable economic development?
Economic growth conducted without depleting natural resources or harming human and environmental health
What is the formal sector of the economy?
Registered businesses whose activities are measured in official statistics like GDP
What is the primary purpose of government regulatory measures in sustainable development?
To curb environmentally harmful activities
What is the primary function of households in the circular flow model?
To provide labor and receive income
What is the main challenge to achieving sustainable development?
Pollution and exploitation of labor
What is the primary role of the tertiary sector of the economy?
To provide services rather than goods
Which branch of economics examines the economic activities of government and its role in the economy?
Public Sector Economics
What is the primary purpose of economic models?
To understand and predict the interactions and outcomes of economic actions
What is the main difference between absolute and relative scarcity?
Absolute scarcity refers to the unavailability of resources, while relative scarcity refers to the limited accessibility of resources due to economic constraints
What is the main approach to research in economics?
The scientific method, involving the formulation of a question, conducting investigations, and drawing conclusions based on evidence
What is the primary challenge in economic research?
Dealing with human behaviors that are diverse and difficult to predict
What is the term for goods that require scarce resources to produce?
Economic goods
What is the focus of International Economics?
International trade and finance, studying how countries interact economically
What is the term for the foregone benefit of the next best alternative when a choice is made?
Opportunity cost
What is the primary impact of a recession on employment?
Job creation decreases.
What is the relationship between aggregate demand and inflation?
Inflation tends to rise during expansion phases.
What is the primary goal of economic analysis?
To allocate resources efficiently
What is the primary purpose of understanding business cycles?
To implement measures to mitigate the adverse effects on the population.
What is the fundamental question that economics seeks to answer?
How to allocate resources efficiently
Which branch of economics examines the overall functioning of an economy?
Macroeconomics
What is the primary characteristic of economically vulnerable populations during economic downturns?
Their income and employment opportunities decrease.
Which of the following is an example of an exogenous reason for business cycles?
Natural disasters.
What is the primary reason for the difference between human wants and available resources?
Limited resources
What is the primary impact of business cycles on exchange rates?
Exchange rates tend to rise during expansion phases.
What is the primary focus of economic decisions?
Allocating scarce resources
What are the primary economic questions that individuals, governments, and societies must answer?
What to produce, how to produce, and for whom to produce
What is the primary impact of business cycles on economic growth?
Economic growth tends to increase during expansion phases.
What is the primary challenge in making economic decisions?
Limited resources
Which phase of the business cycle is characterized by peak economic performance?
Boom.
What is the primary focus of microeconomics?
The decisions of individuals and firms
What is the primary function of the Foreign Sector in the economy?
To engage in trade, affecting imports and exports
What is the main difference between the Real Flow and the Monetary Flow in the economy?
Real Flow deals with the movement of goods and services, while Monetary Flow deals with the movement of money
What is the primary focus of the Goods Market?
The exchange of goods and services
What is the formula for calculating GDP using the Expenditure Approach?
GDP = C + I + G + (X - M)
What is the primary limitation of GDP as a measure of economic activity?
It does not account for the distribution of income among the population
What is the main difference between GDP and GNI?
GDP focuses on production within the country, while GNI accounts for all income earned by the nationals
What is the purpose of calculating per capita income?
To understand the economic well-being of the average citizen
What is the main characteristic of a leading indicator in a business cycle?
It signals future economic changes before they occur
What is the primary focus of Labour Economics?
Analyzing the supply and demand for labour
What is the purpose of economic models in economics?
To provide a simplified representation of complex economic activities
What is the main difference between absolute and relative scarcity?
Absolute scarcity occurs when resources are insufficient, while relative scarcity occurs when resources are sufficient
What is the term for the approach to research in economics that involves objective analysis?
Positive economics
What is the primary challenge faced by economists when conducting research?
Difficulty in controlling variables
What is the focus of Environmental Economics?
Examining economic issues with environmental implications
What is the term for the systematic approach used in economics?
The scientific method
What is the primary goal of economic research?
To understand and predict economic phenomena
What is the main function of a financial institution?
To facilitate savings and provide loans
What is the term for the movement of goods and services?
Real Flow
What is the formula for calculating GDP using the Expenditure Approach?
GDP = C + I + G + (X - M)
What is the main limitation of GDP as a measure of economic activity?
It does not account for income distribution
What is the term for the total income earned by a country's nationals?
GNI
What is the primary role of entrepreneurship in the economy?
To combine the other three factors of production to create goods and services
What is the purpose of calculating per capita income?
To understand the economic well-being of the average citizen
What type of economic indicator moves in the same direction as the economy?
Procyclical Indicator
What is the main difference between the primary and secondary sectors of the economy?
The primary sector involves extraction of natural resources, while the secondary sector involves manufacturing and processing activities
What is the term for goods that are long-lasting and can be used multiple times?
Durable goods
What is the main characteristic of a leading indicator in a business cycle?
It signals future economic changes before they occur
What is the main goal of sustainable economic development?
To conduct economic growth without depleting natural resources or harming human and environmental health
What is the term for the unregistered businesses that are not included in official economic statistics?
Informal sector
What is the main function of the government in the circular flow model?
To collect taxes and provide public services and infrastructure
What is the term for the portion of income available for spending or saving after taxes?
Disposable income
What is the main characteristic of the tertiary sector of the economy?
It provides services rather than goods
What is the primary objective of the economic system?
To allocate scarce resources to satisfy unlimited wants and needs
What is the key consideration when deciding how to produce goods and services?
The availability of resources
Which branch of economics examines the interactions among individuals and firms in the market?
Microeconomics
What is the fundamental challenge that arises from the mismatch between human wants and available resources?
The economic problem
What is the primary concern when deciding for whom to produce goods and services?
The distribution of goods and services
What is the primary focus of macroeconomics?
The study of the overall functioning of the economy
What is the main implication of the scarcity of resources?
Necessity of making choices about resource allocation
Which of the following is a primary economic question?
What to produce
What is the primary characteristic of the prosperity phase in a business cycle?
High economic activity, increasing employment, wages, and standards of living
Which of the following is an example of an endogenous reason for business cycles?
Fluctuations in investment
What is the impact of business cycles on price levels?
Inflation tends to rise during expansion and stabilize or fall during contraction
Which of the following is a characteristic of boom phase in a business cycle?
Peak economic performance before a potential downturn
What is the primary reason why economically vulnerable populations are disproportionately affected by business cycles?
Reduced income and higher unemployment rates
What is the primary purpose of understanding business cycles?
To anticipate economic changes and implement measures to mitigate the adverse effects
What is the primary characteristic of the recession phase in a business cycle?
Decreasing economic growth, output, and employment, leading to a downturn
What is the relationship between business cycles and economic growth?
Expansion phases lead to economic growth, while contraction phases lead to declines
What is the primary purpose of economic decision-making?
To allocate scarce resources efficiently
Which economic question addresses the distribution of goods and services?
For whom to produce?
What is the key distinction between microeconomics and macroeconomics?
Microeconomics studies individual economic units, while macroeconomics studies the overall economy
What is the underlying assumption behind the concept of scarcity?
Human wants are infinite, but resources are finite
What is the fundamental economic problem addressed by microeconomics?
How to allocate resources efficiently
Which economic concept is closely related to the idea of unlimited wants and limited resources?
Scarcity
What is the primary goal of macroeconomic analysis?
To examine the overall functioning of an economy
What is the central theme underlying the study of economics?
The efficient allocation of scarce resources
What is the primary function of the foreign sector in the economy?
To engage in trade, affecting imports and exports
What is the primary difference between the real flow and monetary flow in the economy?
The real flow represents the movement of goods and services, while the monetary flow represents the movement of money
What is the primary limitation of GDP as a measure of economic activity?
It does not account for income distribution among the population
What is the primary difference between GDP and GNI?
GDP measures the total value of goods and services produced within the country's borders, while GNI measures the total income earned by the country's nationals
What is the primary purpose of calculating per capita income?
To understand the economic well-being of the average citizen
What is the primary characteristic of a leading indicator in a business cycle?
It signals future economic changes before they occur
What is the primary purpose of economic indicators in business cycles?
To analyze changes in the business cycle
What is the primary function of financial institutions in the economy?
To facilitate savings and provide loans
Which phase of the business cycle is characterized by decreasing economic growth, output, and employment, leading to a downturn?
Recession
Which of the following factors is an endogenous reason for business cycles?
Fluctuations in investment
What is the total supply of goods and services available in the economy?
Aggregate Supply
Which group is disproportionately affected by business cycles?
Economically vulnerable populations
What is the primary purpose of the government in allocating budget resources?
To influence the provision of public services and economic activity
What is the primary purpose of understanding business cycles?
To anticipate economic changes and implement measures to mitigate the adverse effects on the population
What is the impact of business cycles on employment?
Job creation increases during booms and decreases during recessions
What is the key characteristic of the tertiary sector of the economy?
It provides services rather than goods
What is the primary function of entrepreneurship in the economy?
To combine the other three factors of production to create goods and services
Which of the following is an exogenous reason for business cycles?
Natural disasters
What is the main difference between the formal and informal sectors of the economy?
The informal sector includes unregistered businesses
What is the phase of the business cycle characterized by a gradual improvement in economic conditions and a return to growth?
Recovery
What is the primary goal of sustainable economic development?
To conduct economic growth without depleting natural resources or harming human and environmental health
What is the primary function of households in the economy?
To provide labor and receive income
What is the primary difference between consumer goods and services?
Consumer goods are tangible, while services are intangible
What is the primary role of the government in promoting sustainable economic development?
To impose regulatory measures to curb environmentally harmful activities
What is the primary focus of Labour Economics?
The supply and demand for labour and its effects on wage levels and employment
What is the main difference between deductive and inductive reasoning in economics?
Deductive reasoning involves developing hypotheses based on existing theories, while inductive reasoning involves observing data to develop new theories
What is the purpose of economic models in economics?
To simplify complex economic activities and make predictions
What is the primary challenge in economic research?
The difficulty in controlling variables and conducting experiments
What is the main difference between absolute and relative scarcity?
Absolute scarcity occurs when resources are insufficient to produce a good, while relative scarcity occurs when resources are sufficient but inaccessible to most
What is the primary focus of Environmental Economics?
The economic issues with environmental implications
What is the primary goal of economic research in economics?
To describe and predict economic phenomena without judgment
What is the primary approach to research in economics that involves value judgments and subjective perspectives?
Normative Economics
Which branch of economics focuses on the role of money in the economy, including how it's controlled and its effects on economic variables?
Monetary Economics
What is the primary difference between deductive and inductive reasoning in economics?
Deductive reasoning involves developing hypotheses, while inductive reasoning involves observing data
What is the primary purpose of economic models?
To simplify complex economic activities and make predictions
What is the primary challenge in economic research?
Dealing with human behaviors that are diverse and difficult to predict
What is the term for goods that are naturally available without cost?
Free goods
What is the primary function of entrepreneurship in the economy?
To combine the other three factors of production to create goods and services
What is the term for the approach to research in economics that involves value judgments and subjective perspectives?
Normative economics
What is the primary difference between absolute and relative scarcity?
Absolute scarcity occurs when resources are insufficient, while relative scarcity occurs when resources are sufficient but inaccessible
What is the primary difference between the real flow and monetary flow in an economy?
Real flow represents the movement of goods and services, while monetary flow represents the movement of money.
Which of the following is NOT a limitation of GDP as a measure of economic activity?
It accounts for non-monetary transactions and informal economic activities.
What is the main difference between a leading indicator and a lagging indicator in a business cycle?
Leading indicators signal future economic changes, while lagging indicators confirm changes that have already occurred.
What is the primary purpose of calculating per capita income?
To provide an average income per person, dividing total GDP or GNI by the population.
What is the main difference between the Product Approach and the Expenditure Approach to calculating GDP?
The Product Approach sums the total income earned from producing goods and services, while the Expenditure Approach sums the total spending on final goods and services.
What is the primary function of financial institutions in the economy?
To facilitate savings and provide loans.
What is the main characteristic of a procyclical indicator in a business cycle?
It moves in the same direction as the economy.
What is the primary purpose of understanding business cycles?
To forecast future economic changes.
What is the primary implication of the fundamental economic problem?
Choices must be made about how to allocate resources efficiently
Which of the following is a key characteristic of macroeconomics?
It addresses broad issues like unemployment and economic growth
What is the primary role of economic questions in the study of economics?
To guide decision-making about resource allocation
What is the primary difference between microeconomics and macroeconomics?
Microeconomics examines the behavior of individual economic units, while macroeconomics studies the overall economy
What is the primary implication of the scarcity of resources?
Choices must be made about how to allocate resources efficiently
What is the primary focus of the economic problem of for whom to produce?
Determining who will receive the goods and services produced
What is the primary role of economic decisions in the economy?
To allocate resources efficiently
Which of the following is a key characteristic of the economic problem of what to produce?
It involves deciding which goods and services to produce given the limited resources
What is the primary role of the government in the allocation of resources?
To provide public services and infrastructure
Which of the following sectors of the economy is responsible for providing services rather than goods?
Tertiary Sector
What is the primary difference between durable and semi-durable goods?
Durability and lifespan
Which of the following is an example of a supportive measure for sustainable development?
Subsidies for environmentally friendly practices
What is the primary role of entrepreneurship in the economy?
To combine the other three factors of production to create goods and services
What is the primary challenge to achieving sustainable development?
Pollution and environmental degradation
Which of the following is an example of a formal sector business?
Registered companies with official tax identification
What is the primary purpose of exchange rates in international trade?
To determine how much of one currency can be exchanged for another
What is the primary role of government and social services in supporting economically vulnerable populations during economic downturns?
To provide financial assistance and support
What is the primary impact of business cycles on exchange rates?
It leads to a depreciation of the national currency
What is the primary difference between aggregate demand and aggregate supply?
Aggregate demand is the total demand for goods and services, while aggregate supply is the total supply of goods and services
What is the primary reason why business cycles are important to understand?
To anticipate and prepare for economic changes
What is the primary characteristic of the prosperity phase of the business cycle?
High economic activity and increasing employment
What is the primary impact of business cycles on economic growth?
It leads to fluctuations in economic growth, with expansion and contraction phases
What is the primary reason why economically vulnerable populations are disproportionately affected by business cycles?
They are more likely to experience reduced income and higher unemployment rates during economic downturns
What is the primary role of understanding business cycles in economic policymaking?
To anticipate and prepare for economic changes and implement measures to mitigate the adverse effects
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
