QUIZ 1 MICROECONOMICS

A market structure in which only one producer supplies a good that is in demand, thereby permitting them to set the price by how much they supply, is called

• Monopoly

• Oligopoly

• Competition

• Conglomerate

Madeline works as a teacher. Her salary provides the government with a much-needed service, and they pay her a salary. With her salary, she buys goods from private businesses, and pays taxes to the government. Madeline's economic interdependence with the government and businesses is referred to as:

• the money flow

• circular flow of economic activity

• the monetary cycle

• None of These

Amy just opened her own consulting firm. She loves being her own boss and not consulting with anyone before she makes decisions. The only downside is that she has invested all the money herself. If the business fails, she could go bankrupt. What kind of business is it?

• partnership

• cooperative

• sole proprietorship

• corporation

Susan, Phil, Robert, and Martina decide to quit their big firms and start their own law practice together. The four make all business decisions together and share all of the profits and risks. Their new law firm is a

• sole proprietorship

• partnership

• franchise

• corporation

It pertains to the limited availability of economic resources relative to society’s unlimited demand for goods and services.

• Scarcity

• Demand

• Supply

• Economics

It is a science that deals with the management of scarce resources. It is also described as a scientific study on how individuals and the society generally make choices.

• Scarcity

• Demand

• Supply

• Economics

Economics came from the greek words "Oikos" and "Nomus" which means:

• Household & System of Management

• House rule & System of Management

• Household & System of Economics

• None of These

3 Es of Economics are:

• Efficiency, Equity and Effectiveness

• Efficiency, Equality and Effectiveness

• Efficacy, Equity and Effectiveness

• None of These

It refers to the part of person’s income, which is not spent on consumption.

• Depreciation

• Wealth

• Savings

• Interest

This refers to anything that has economic value.

• Depreciation

• Wealth

• Savings

• Interest