(A) specialization
(B) market economy
(C) globalization
(D) equilibrium condition
Category: Economics Mcqs
The concept of invisible hand in the organization of supply and demand in a well-functioning market mechanism refers to the
(A) self-regulating economy
(B) government-controlled economy
(C) command economy
(D) socialism
Productive efficiency occurs when an economy cannot produce _____ of one good without producing _____ of another good.
(A) more, more
(B) more, less
(C) less, less
(D) none of these
Which economic term is used to measure the overall performance of an economy? (A) GDP
(A) GDP
(B) GNP
(C) Gini
(D) HDI
The maximum quantity of goods that can be efficiently produced by an economy using its scarce resources and available technology is called
(A) the supply curve
(B) the demand curve
(C) production-possibility frontier
(D) the supply-demand equilibrium
Fiscal policy consists of government’s
(A) revenue and taxation
(B) taxation and credit control
(C) expenditure and investment
(D) expenditure and taxation
The three fundamental economic problems of what, how, and for whom are solved by
(A) supply
(B) demand
(C) consumption
(D) markets
The three fundamental economic problems every human society must confront and resolve are
(A) what, how and when
(B) what, where and when
(C) what, how, and for whom
(D) how, where, and for whom
When we assume that what is true for the part is also true for the whole, we are committing
(A) the post hoc fallacy
(B) failure to hold other things constant
(C) the fallacy of composition
(D) normative fallacy
When one event occurred before another event, the fallacy in economic reasoning that the first event caused the second event is called
(A) the post hoc fallacy
(B) failure to hold other things constant
(C) the fallacy of composition
(D) normative fallacy