QUIZ 1

Which of the following is a differentiated product?

• a. A hamburger

• b. An automobile

• c. A shirt

• d. All of the above

The demand curve faced by a perfectly competitive firm is

• a. Perfectly elastic

• b. Perfectly inelastic

• c. Elastic

• d. Inelastic

Economics is considered as

• a. Science

• b. Arts

• c. Both science and arts

The theory of Relative Income Hypothesis was given by

• a. James Duesenberry

• b. Milton Friedman

• c. J M Keynes

• d. Adam Smith

Who is known as the father of Economics?

• a. J M Keynes

• b. Milton Friedman

• c. David Ricardo

• d. Adam Smith

In a ______________ economic system, customs and traditions determine what and how to produce

• traditional

• market

• command

• mixed

In a ______________ economic system, the government owns resources and controls production, prices, and wages

• traditional

• market

• command

• mixed

What is a consumer?

• a person who takes things

• a person who purchases goods and services for personal use

• a person who takes good away

• the economic factors affecting the price, demand, and availability of a commodity