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

Gross Domestic Product (GDP) measures the total monetary value of all finished goods and services produced within a country's borders in a specific time period.

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

The law of demand states that as the price of a good rises, consumers will purchase less of it, assuming all other factors remain constant.

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

Marginal cost refers to the change in total production cost that comes from making or producing one additional unit of a product.

Question 4

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

Accepted Answer

Market economy

Answer

In a market economy, prices and production decisions are determined by the interactions of supply and demand with minimal government intervention.

Question 5

What is 'inflation' in economic terms?

Accepted Answer

A general rise in price levels over time

Answer

Inflation is the rate at which the general level of prices for goods and services rises over time, reducing purchasing power.

EOC - End-of-Course Test Practice Test

EOC - End-of-Course Test Practice Test

EOC EOC Economics 1