EOC EOC Economics 1

Question 1

What term describes the total value of all goods and services produced within a country in a year?

Accepted Answer

Gross Domestic Product

Answer

Consumer Price Index

Answer

Net National Income

Answer

Balance of Trade

Question 2

When the price of a good increases, what typically happens to the quantity demanded, according to the law of demand?

Accepted Answer

It decreases

Answer

It increases

Answer

It stays the same

Answer

It doubles

Question 3

What is the term for the additional cost incurred by producing one more unit of a good or service?

Accepted Answer

Marginal cost

Answer

Fixed cost

Answer

Sunk cost

Answer

Opportunity cost

Question 4

Which type of economic system relies primarily on supply and demand to determine prices and production?

Accepted Answer

Market economy

Answer

Command economy

Answer

Traditional economy

Answer

Mixed economy

Question 5

What is 'inflation' in economic terms?

Accepted Answer

A general rise in price levels over time

Answer

A decrease in the money supply

Answer

An increase in unemployment

Answer

A drop in consumer spending

Question 6

What does 'opportunity cost' mean in economics?

Accepted Answer

The value of the next best alternative foregone

Answer

The price paid for a product

Answer

The cost of raw materials

Answer

The total cost of production