Economics
What is the fundamental economic problem?
Scarcity of resources
What is the study of economics primarily concerned with?
Allocation of scarce resources
What does GDP stand for?
Gross Domestic Product
What is the law of demand?
As price decreases, quantity demanded increases
Which of the following is an example of a 'public good'?
National defense
What is opportunity cost?
The value of the next best alternative foregone
What type of economy is characterized by private ownership and free markets?
Capitalist economy
What does inflation measure?
The rise in general price levels over time
What is the purpose of a central bank in a country?
To regulate the money supply and maintain stability
What is considered a factor of production?
Labor