1. Consider the following statements:
1. Gross domestic product (GDP) is the total market value of all finished goods and services produced in a country
2. Sharp decreases in employment indicate prosperous economic growth
3. Consumer Price Index (CPI) measures the level of retail price changes

A. Only one statement is true
B. All statements are true
C. No statement is true
D. Only two statements are true

2. Which of the following statements are true?
1. Capitalism is an economic system characterized by Individuals and businesses own and control resources.
2. Socialism is an economic and social system characterized by Collective ownership

A. 1 only
B. 2 only
C. Both 1&2
D. Neither 1nor2

3. Consider the following statements:
1. Appreciation – A rise in the value of an asset.
2. Arbitrage – Buying an asset in one market and simultaneously selling an identical asset in another market at a higher price.
3. Assets – The total of all the money coming into a country from abroad less all of the money going out of the country during the same period.
Which of the statements given above is/are correct?

A. 1 and 2 only
B. 2 only
C. 2 and 3 only
D. 3 only

4. What is collateral in the context of loans?

A. A loan given to a borrower without any conditions
B. A penalty imposed for late repayment of a loan
C. An asset pledged by a borrower that may be seized by a lender if the borrower fails to repay the loan
D. A document that outlines the terms and conditions of a loan

5. Which of the following statements are true?
1. Phillips curve was proposed by economist from New Zealand, A.W.H. Phillips
2. Phillips curve proposed that there was a trade-off between inflation and unemployment

A. 1 only
B. 2 only
C. Both 1&2
D. Neither 1nor2

6. Which of the following statements are true regarding Frictional unemployment?
1. It is part of the jobless total caused by people simply changing jobs
2. It is not caused due to spending time on job search

A. 1 only
B. 2 only
C. Both 1&2
D. Neither 1nor2

7.Which of the following is NOT considered a factor of production?

A. Land
B. Labour
C. Laws
D. Capital

8. Which of the following best describes elasticity in economics?

A. A measure of how two unrelated goods affect each other.
B. A measure of the responsiveness of one variable to changes in another.
C. A measure of how much supply increases when demand increases.
D. A measure of the quality of goods over time.

9. What does income elasticity of demand measure?

A. How the quantity demanded of a good changes when the price changes.
B. How the price of a good changes when consumer preferences change.
C. How the quantity demanded of a good changes when income increases.
D. How the supply of a good changes when government policies change.

10. The characteristic of public goods that implies people cannot choose not to consume them is called:

A. Non-rival
B. Non-excludable
C. Non-rejectable
D. Non-refundable