[ { "question": "What does GDP stand for in economics?", "correctAnswer": "Gross Domestic Product", "options": [ "General Demand Price", "Gross Domestic Product", "Global Development Plan", "Governance Dividend Payout" ] }, { "question": "Who is known as the 'Father of Modern Economics'?", "correctAnswer": "Adam Smith", "options": [ "John Maynard Keynes", "Milton Friedman", "Karl Marx", "Adam Smith" ] }, { "question": "What is the law that states that demand decreases as the price increases, and vice versa?", "correctAnswer": "Law of Demand", "options": [ "Law of Demand", "Law of Supply", "Law of Market Equilibrium", "Law of Price Elasticity" ] }, { "question": "What economic concept refers to a situation in which every individual or economy is satisfied with the current distribution of resources, and there is no way to redistribute resources to make someone better off without making someone else worse off?", "correctAnswer": "Pareto efficiency", "options": [ "Nash equilibrium", "Pareto efficiency", "General equilibrium", "Marginal efficiency" ] }, { "question": "Who won the Nobel Prize in Economics in 2001 for his analysis of markets with asymmetric information?", "correctAnswer": "Joseph E. Stiglitz", "options": [ "Joseph E. Stiglitz", "Milton Friedman", "Paul Krugman", "Richard Thaler" ] }, { "question": "What is the term for a situation in economics where the allocation of goods and services is not efficient, often leading to a net loss of economic value?", "correctAnswer": "Market failure", "options": [ "Market failure", "Supply shock", "Demand crisis", "Fiscal drag" ] }, { "question": "What theory suggests that people make decisions based on the potential value of losses and gains rather than the final outcome?", "correctAnswer": "Prospect Theory", "options": [ "Utility Theory", "Prospect Theory", "Game Theory", "Rational Choice Theory" ] }, { "question": "What term refers to the value of the next best alternative that must be given up when a choice is made?", "correctAnswer": "Opportunity Cost", "options": [ "Sunk Cost", "Transaction Cost", "Opportunity Cost", "Marginal Cost" ] }, { "question": "Who proposed the theory of comparative advantage, a fundamental concept in international trade theory?", "correctAnswer": "David Ricardo", "options": [ "Adam Smith", "Karl Marx", "David Ricardo", "John Maynard Keynes" ] }, { "question": "Who introduced the concept of 'Creative Destruction' in economics?", "correctAnswer": "Joseph Schumpeter", "options": [ "John Maynard Keynes", "Adam Smith", "Milton Friedman", "Joseph Schumpeter" ] }, { "question": "In econometrics, what is the term for a regressor that is correlated with the error term, causing biased and inconsistent estimates of the parameter of interest?", "correctAnswer": "Endogenous variable", "options": [ "Latent variable", "Endogenous variable", "Exogenous variable", "Dummy variable" ] }, { "question": "Which school of economic thought focuses on the role of institutions in shaping economic behaviour and maintains that modern economies should develop effective institutions to support the workings of markets?", "correctAnswer": "Institutional economics", "options": [ "Neoclassical economics", "Keynesian economics", "Behavioral economics", "Institutional economics" ] }, { "question": "In game theory, what concept refers to a game where one player's gain does not necessarily result in another player's loss, and in which cooperation and negotiation can lead to all players benefiting?", "correctAnswer": "Non-zero-sum game", "options": [ "Zero-sum game", "Non-zero-sum game", "Dominant strategy equilibrium", "Nash equilibrium" ] }, { "question": "What is the economic model that describes a hypothetical market where no buyer or seller has the market power to influence prices?", "correctAnswer": "Perfect competition", "options": [ "Monopoly", "Oligopoly", "Perfect competition", "Monopolistic competition" ] }, { "question": "Who developed the concept of 'invisible hand' to describe the self-regulating behavior of the marketplace?", "correctAnswer": "Adam Smith", "options": [ "David Ricardo", "Adam Smith", "John Maynard Keynes", "Milton Friedman" ] }, { "question": "What term is used to describe a market situation where a single company or group owns all or nearly all of the market for a given type of product or service?", "correctAnswer": "Monopoly", "options": [ "Oligopoly", "Perfect competition", "Monopoly", "Duopoly" ] }, { "question": "What concept in economics is defined as the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service?", "correctAnswer": "Marginal utility", "options": [ "Marginal cost", "Total utility", "Average utility", "Marginal utility" ] }, { "question": "Which economist is best known for his book 'The Wealth of Nations'?", "correctAnswer": "Adam Smith", "options": [ "John Maynard Keynes", "Milton Friedman", "Adam Smith", "David Ricardo" ] }, { "question": "What term describes the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations?", "correctAnswer": "Protectionism", "options": [ "Liberalism", "Protectionism", "Free trade", "Globalization" ] }, { "question": "Who is known for his work on the theory of 'liquidity preference' as part of his theory on interest rates in 'The General Theory of Employment, Interest, and Money'?", "correctAnswer": "John Maynard Keynes", "options": [ "Milton Friedman", "Adam Smith", "David Ricardo", "John Maynard Keynes" ] }, { "question": "Which term refers to the total market value of all final goods and services produced within a country in a given period?", "correctAnswer": "Gross Domestic Product (GDP)", "options": [ "Net National Product (NNP)", "Gross Domestic Product (GDP)", "Gross National Product (GNP)", "National Income" ] }, { "question": "What is the term for a tax on imports or exports between sovereign states?", "correctAnswer": "Tariff", "options": [ "Tariff", "Subsidy", "VAT", "Excise tax" ] }, { "question": "Which economic concept describes the decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while holding all other factors of production constant?", "correctAnswer": "Diminishing returns", "options": [ "Economies of scale", "Diminishing returns", "Marginal utility", "Capital accumulation" ] }, { "question": "What term refers to the total value of goods produced and services provided in a country during one year, including income earned by citizens abroad but excluding income earned by foreigners in the country?", "correctAnswer": "Gross National Product (GNP)", "options": [ "Gross National Product (GNP)", "Gross Domestic Product (GDP)", "Net National Product (NNP)", "National Income" ] }, { "question": "Which economic indicator measures the average prices of goods and services in an economy and is often used as a measure of inflation?", "correctAnswer": "Consumer Price Index (CPI)", "options": [ "Gross Domestic Product (GDP)", "Consumer Price Index (CPI)", "Unemployment rate", "Producer Price Index (PPI)" ] }, { "question": "What is the term for an economic system where the means of production are privately owned and operated for profit, usually in competitive markets?", "correctAnswer": "Capitalism", "options": [ "Socialism", "Communism", "Capitalism", "Feudalism" ] }, { "question": "Who is the economist known for his work on the theory of 'human capital' in his book 'Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education'?", "correctAnswer": "Gary Becker", "options": [ "Milton Friedman", "Gary Becker", "Adam Smith", "John Maynard Keynes" ] }, { "question": "What term is used to describe a market structure characterized by a small number of large firms that dominate the market, leading to limited competition?", "correctAnswer": "Oligopoly", "options": [ "Monopoly", "Duopoly", "Oligopoly", "Perfect competition" ] }, { "question": "Which concept in economics refers to the amount of goods and services that consumers are willing and able to purchase at a given price level?", "correctAnswer": "Aggregate demand", "options": [ "Aggregate supply", "Aggregate demand", "Market equilibrium", "Consumer surplus" ] }, { "question": "In microeconomics, what term refers to the situation where the additional satisfaction gained from consuming additional units of a good or service eventually starts to decrease?", "correctAnswer": "Diminishing marginal utility", "options": [ "Increasing returns to scale", "Diminishing marginal utility", "Marginal cost pricing", "Consumer equilibrium" ] }, { "question": "What is the name of the index that measures the degree of concentration in a market and is used to determine the potential for market power to be exercised?", "correctAnswer": "Herfindahl-Hirschman Index", "options": [ "Lorenz Curve", "Gini Coefficient", "Herfindahl-Hirschman Index", "Consumer Confidence Index" ] }, { "question": "The Sonnenschein-Mantel-Debreu theorem implies what about aggregate excess demand functions in general equilibrium models?", "correctAnswer": "They can take almost any shape consistent with Walras' law and homogeneity of degree zero", "options": [ "They must be downward sloping like individual demand curves", "They ensure uniqueness of the competitive equilibrium", "They can take almost any shape consistent with Walras' law and homogeneity of degree zero", "They require aggregate demand to be linear in prices" ] }, { "question": "In mechanism design, which condition (combined with no-veto power) is necessary and sufficient for a social choice rule to be implementable in Nash equilibrium?", "correctAnswer": "Maskin monotonicity", "options": [ "Bayesian incentive compatibility", "Maskin monotonicity", "Strategy-proofness", "Clarke pivotality" ] }, { "question": "The Blanchard-Kahn conditions for linear rational expectations models require what for a unique, stable equilibrium?", "correctAnswer": "The number of unstable eigenvalues must equal the number of forward-looking (jump) variables", "options": [ "All eigenvalues must lie inside the unit circle", "The number of unstable eigenvalues must equal the number of predetermined state variables", "The number of unstable eigenvalues must equal the number of forward-looking (jump) variables", "At least one eigenvalue must be exactly one" ] }, { "question": "Under the Permanent Income Hypothesis with rational expectations and quadratic utility, consumption should approximately follow which process?", "correctAnswer": "A martingale or random walk driven by innovations to permanent income", "options": [ "A deterministic upward trend equal to wage growth", "A martingale or random walk driven by innovations to permanent income", "A stationary AR(1) process around zero", "A cycle with frequency determined by business investment" ] }, { "question": "Myerson's Revenue Equivalence Theorem states that, under standard regularity conditions, all auction formats that allocate the item efficiently will have what property?", "correctAnswer": "They yield the same expected revenue and bidder utilities up to an additive constant", "options": [ "They produce higher revenue when more bidders are risk-averse", "They yield the same expected revenue and bidder utilities up to an additive constant", "They require the auctioneer to reveal reserve prices", "They make truthful bidding a dominant strategy in all formats" ] }, { "question": "In a Ramsey optimal taxation framework with heterogeneous agents, what condition ensures that long-run capital taxes should converge to zero?", "correctAnswer": "The government has access to non-distorting lump-sum taxes or transfers", "options": [ "The government has access to non-distorting lump-sum taxes or transfers", "The elasticity of labor supply is perfectly inelastic", "The intertemporal elasticity of substitution equals one", "The economy features complete markets for idiosyncratic risk" ] }, { "question": "According to the Lucas critique, why do econometric policy evaluations based on historical correlations often fail?", "correctAnswer": "Policy changes alter agents' decision rules, so structural parameters must be modeled explicitly", "options": [ "Policy changes alter agents' decision rules, so structural parameters must be modeled explicitly", "Inflation systematically biases all OLS estimates downward", "Historical correlations are always spurious in macroeconomic data", "Rational expectations imply policy interventions have no real effects" ] }, { "question": "In dynamic stochastic general equilibrium models, the transversality condition rules out what type of equilibrium behavior?", "correctAnswer": "Explosive asset accumulation that violates households' intertemporal budget constraints", "options": [ "Stationary fluctuations around a balanced growth path", "Explosive asset accumulation that violates households' intertemporal budget constraints", "Temporary deviations from Euler equations due to shocks", "Multiple equilibria arising from sunspot expectations" ] }, { "question": "Kydland and Prescott's concept of time inconsistency implies what about discretionary policy without credible commitment mechanisms?", "correctAnswer": "It leads to higher inflation or deficits relative to the socially optimal rule-based policy", "options": [ "It leads to higher inflation or deficits relative to the socially optimal rule-based policy", "It always results in deflationary spirals in the long run", "It eliminates the need for independent central banks", "It ensures that private agents perfectly anticipate policy shocks" ] }, { "question": "In a search-and-matching labor market model, what does the Hosios condition equate to achieve efficiency?", "correctAnswer": "Workers' bargaining weight equals the elasticity of the matching function with respect to unemployment", "options": [ "The vacancy posting cost equals the unemployment benefit", "Workers' bargaining weight equals the elasticity of the matching function with respect to unemployment", "Firms' vacancy yield equals the marginal product of labor", "The job-finding rate equals the separation rate in steady state" ] }, { "question": "What is the term for inflation that occurs alongside stagnant economic growth and high unemployment?", "correctAnswer": "Stagflation", "options": [ "Hyperinflation", "Deflation", "Stagflation", "Disinflation" ] }, { "question": "Which monetary policy rule suggests setting interest rates based on deviations of inflation from target and output from potential?", "correctAnswer": "Taylor rule", "options": [ "Fisher rule", "Quantity theory", "Taylor rule", "Okun's rule" ] }, { "question": "In behavioral economics, what bias describes the tendency to overvalue immediate rewards at the expense of long-term intentions?", "correctAnswer": "Present bias", "options": [ "Anchoring bias", "Present bias", "Endowment effect", "Confirmation bias" ] }, { "question": "Which concept measures how much the quantity demanded of a good responds to a change in income?", "correctAnswer": "Income elasticity of demand", "options": [ "Price elasticity of demand", "Cross-price elasticity", "Income elasticity of demand", "Elasticity of substitution" ] }, { "question": "What is the collective action problem in which individual users deplete or spoil a shared resource despite knowing it is against everyone's long-term interest?", "correctAnswer": "Tragedy of the commons", "options": [ "Free-rider problem", "Moral hazard", "Tragedy of the commons", "Information asymmetry" ] }, { "question": "Which trade theory explains that countries export goods that intensively use their abundant factors of production?", "correctAnswer": "Heckscher-Ohlin model", "options": [ "Absolute advantage", "Heckscher-Ohlin model", "Gravity model", "Infant industry theory" ] } ]