31. Nash Equilibrium in Game Theory
A. Represents Perfect Competition
B. Situation Where No Player Has an Incentive to Deviate Unilaterally
C. Implies Monopoly Power
D. Indicates Market Failure
32. The Circular Flow of Income
A. Only Involves Government Expenditure
B. Represents the Flow of Goods, Services, and Money in an Economy
C. Excludes Households and Businesses
D. Focuses Solely on Imports and Exports
33. Characteristics of a Public Good
A. Excludable and Rivalrous
B. Non-Excludable and Non-Rivalrous
C. Excludable but Non-Rivalrous
D. Non-Excludable but Rivalrous
34. The Quantity Theory of Money
A. States Money Has No Effect on Prices
B. Relates Changes in Money Supply to Changes in Price Levels
C. Advocates for Barter System
D. Proposes Fixed Exchange Rates
35. Elasticity of Cross-Demand
A. Measures Responsiveness of Quantity Demanded to Changes in Income
B. Measures Responsiveness of Quantity Demanded to Changes in the Price of Another Good
C. Determines Consumer Preferences
D. Reflects Producer Surplus
36. Gini Coefficient in Income Inequality
A. Represents Perfect Equality
B. Measures the Degree of Income Inequality within a Population
C. Reflects Poverty Rate
D. Measures Economic Growth
37. Marginal Utility Concept
A. Total Satisfaction Derived from Consuming All Units of a Good
B. Additional Satisfaction from Consuming One More Unit of a Good
C. Independent of Consumer Preferences
D. Only Applicable to Luxury Goods
38. The Real Exchange Rate
A. Measures Nominal Exchange Rate
B. Adjusts Nominal Exchange Rate for Differences in Price Levels Between Countries
C. Reflects Trade Balance
D. Determines Interest Rates
39. Pareto Efficiency in Welfare Economics
A. Focuses on Wealth Redistribution
B. Situation Where No One Can Be Made Better Off Without Making Someone Worse Off
C. Advocates for Market Monopoly
D. Supports Price Controls
40. The Trilemma in International Economics
A. Relates to Environmental Conservation
B. Implies a Trade Surplus
C. States That It’s Impossible to Have a Fixed Foreign Exchange Rate, Free Capital Movement, and an Independent Monetary Policy Simultaneously
D. Advocates for Autarky
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