Intro to Economics Quiz

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Fundamentals of economics

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adesola adekoya

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Intro to Economics Quiz


Intro to Economics QuizVersión en línea Fundamentals of economics por adesola adekoya 1 What does the term scarcity refer to in economics? a Abundant resources and unlimited wants b Resources being infinite in supply c Limited resources relative to unlimited wants d Wages and prices being the same for all goods 2 Which concept represents the next best alternative given up when making a choice? a Sunk cost b Marginal cost c Comparative advantage d Opportunity cost 3 Demand refers to the willingness and ability to purchase at a given what? a Price b Quality c Income level d Time of day 4 What is the law of supply? a Lower prices increase quantity supplied b Supply equals demand at all prices c Higher prices incentivize more production d Prices have no effect on production 5 Equilibrium in a market occurs where? a Quantity supplied equals quantity demanded b Price floor is set c Quantity demanded exceeds supply d Prices are maximized by sellers 6 Elasticity measures how a variable responds to a change in what? a Time b Supply c Price d Income 7 Which factor is considered a basic factor of production? a Labor b Advertising c Interest rates d Debt 8 Gross Domestic Product (GDP) measures what? a Total value of all final goods and services produced in a country b Average income per person c Total value of exports d Total government spending 9 What distinguishes a market economy from a command economy? a All production is planned by central planners b Wages are always fixed by the state c There is no government intervention in markets d Prices allocate resources in a market economy 10 What is marginal analysis used for in economics? a Measuring total profits only b Assessing the additional benefits and costs of a decision c Determining exact prices of all goods d Replacing the need for budget constraints Feedback 1 Scarcity means resources are finite, forcing choices. The other options misstate resource abundance or pricing equality. 2 Opportunity cost is the value of the foregone alternative. Sunk cost is past cost, not relevant to the present choice. 3 Demand responds to price changes; other options influence demand indirectly but are not the definition. 4 The law states that, ceteris paribus, higher prices lead to higher quantity supplied. 5 Equilibrium is where S = D; other statements describe disequilibrium or policy tools. 6 Price elasticity shows responsiveness of quantity demanded or supplied to price changes. 7 Labor is a primary factor; others are not traditional factors of production. 8 GDP sums final output; other options describe other metrics or misinterpret GDP. 9 In market economies, prices coordinate decisions; the other options describe command economies. 10 Marginal analysis compares incremental costs and benefits; other options mischaracterize its use.

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Intro to Economics Quiz

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Intro to Economics QuizVersión en línea

por adesola adekoya

What does the term scarcity refer to in economics?

Which concept represents the next best alternative given up when making a choice?

Demand refers to the willingness and ability to purchase at a given what?

What is the law of supply?

Equilibrium in a market occurs where?

Elasticity measures how a variable responds to a change in what?

Which factor is considered a basic factor of production?

Gross Domestic Product (GDP) measures what?

What distinguishes a market economy from a command economy?

What is marginal analysis used for in economics?

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