Economics Quiz: Key Concepts and Terms

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What does opportunity cost refer to?

The profits gained from investments
The total benefits received from a choice
The price of a good or service
What you give up to get something (correct)

Which term describes a group of businesses working together to control prices?

Monopoly
Market competition
Cartel (correct)
Economic coalition

What is a key feature of Keynesian economics?

Government intervention in the economy (correct)
Emphasis on market self-regulation
Promotion of fiscal austerity
Strict adherence to gold standards

Which term refers to loyalty to a specific region?

Sectionalism (C) Signup and view all the answers

What does the free rider problem involve?

Benefits without contribution (C) Signup and view all the answers

What is the main focus of monetary policy?

Controlling the money supply (D) Signup and view all the answers

Which phrase best describes externalities?

Unintended consequences of an action (B) Signup and view all the answers

What does economic inequality indicate?

Wealth concentration in certain groups (D) Signup and view all the answers

What concept does the Bill of Rights primarily protect?

Individual liberties (B) Signup and view all the answers

Which event is directly associated with government intervention during the Great Depression?

The New Deal (C) Signup and view all the answers

Which amendment guarantees due process?

Fifth Amendment (C) Signup and view all the answers

Who is known as the 'Father of the Constitution'?

James Madison (B) Signup and view all the answers

Which political ideology prioritizes individual freedom?

Libertarianism (A) Signup and view all the answers

What did Martin Luther King Jr. primarily advocate for?

Racial equality (A) Signup and view all the answers

Which concept refers to a state's ability to govern itself without external interference?

Sovereignty (A) Signup and view all the answers

Which key figure is best known for authoring the Declaration of Independence?

Thomas Jefferson (B) Signup and view all the answers

What principle did John Locke contribute that influenced the Founding Fathers?

Natural rights (A) Signup and view all the answers

What does the Rule of Law signify in a democratic society?

All individuals, including leaders, are subject to the law (A) Signup and view all the answers

Opportunity Cost

The value of the next best alternative forgone when making a decision.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (or produce a particular good or service) more efficiently than others.

Monopoly

Exclusive control by one person or group over a market for a particular commodity or service.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.