- 1. The philosophy of economics explores the foundational assumptions, methods, and implications of economic theories and models. It delves into questions about the nature of rationality, the role of values in economic decision-making, the relationship between economics and other disciplines, and the ethical considerations inherent in economic policy. Philosophers of economics seek to critically assess the assumptions and concepts underlying economic theory and to reflect on the way in which economics shapes our understanding of the world and human behavior.
Who is considered the father of modern economics?
A) Adam Smith
B) John Maynard Keynes
C) Karl Marx
D) Friedrich Hayek
- 2. Which economic concept refers to the total value of all final goods and services produced in a country in a given period?
A) Consumer Price Index (CPI)
B) Supply and Demand
C) Inflation
D) Gross Domestic Product (GDP)
- 3. Which economic school of thought emphasizes the importance of free markets and limited government intervention?
A) Marxian Economics
B) Behavioral Economics
C) Keynesian Economics
D) Classical Economics
- 4. Which economic concept stands for the additional cost of producing one more unit of a good or service?
A) Fixed Cost
B) Marginal Cost
C) Average Cost
D) Opportunity Cost
- 5. What is the term for the point where the supply and demand curves intersect in a market?
A) Surplus
B) Shortage
C) Price Floor
D) Equilibrium
- 6. Which type of economy is characterized by individual ownership of resources and decisions made by voluntary exchange in markets?
A) Mixed Economy
B) Planned Economy
C) Command Economy
D) Market Economy
- 7. What is the economic theory that suggests individuals act to maximize their own self-interests, leading to overall benefits in society?
A) Rational Choice Theory
B) Utility Theory
C) Prospect Theory
D) Game Theory
- 8. What is the term for a situation where resources are allocated inefficiently, leading to losses in potential economic welfare?
A) Market Failure
B) Externalities
C) Monopoly
D) Price Discrimination
- 9. Which term describes a situation where there is no way to make one person better off without making someone else worse off?
A) Monopoly
B) Inflation
C) Fiscal policy
D) Pareto efficiency
- 10. According to Adam Smith, what drives individuals to work and produce goods and services?
A) Social norms
B) Government regulation
C) Charity
D) Self-interest
- 11. Which economic concept is based on the idea that resources are limited but wants are unlimited?
A) Abundance
B) Surplus
C) Equilibrium
D) Scarcity
- 12. What type of economics focuses on how individuals and institutions make decisions to allocate limited resources?
A) International economics
B) Macroeconomics
C) Development economics
D) Microeconomics
- 13. Which economic concept measures the responsiveness of quantity demanded to a change in price?
A) Elasticity
B) Monopoly power
C) Supply and demand
D) Competition
- 14. What is the term for the difference between total revenue and total cost?
A) Loss
B) Profit
C) Operational cost
D) Break-even point
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