APPLIED ECONOMICS QUIZ 3

1. This is the study of economics in relation to real world situations, as opposed to the theory of economics. It is the application of economic principles and theories to real situations and trying to predict what the outcomes might be.

• Applied Economics

• Economics

• Social Science

• Physical Science

2. Which of the following is NOT a characteristic of a perfectly competitive market?

• Homogeneous products

• Many buyers and sellers

• No barriers to entry or exit

• Firms have market power

3. It is the science that involves the use of scarce resources to satisfy unlimited wants.

• Applied Economics

• Economics

• Social Science

• Physical Science

4. The following define scarcity, EXCEPT.

• The good is scarce compared to its demand

• The unlimited resources of society

• The supply is limited

• The unlimited wants of society

5. He attributed to be the first to use the phrase “applied economics” to designate the application of economic theory to the interpretation and explanation of particular economic phenomena.

• John Neville Keynes

• Karl Marx   

• John Nuville Keynes

• John Lloyd

6.Which of the following is NOT a factor that contributes to scarcity?

• Limited resources    

• Unlimited wants

• Government intervention

• Opportunity cost

7. Economics is a ___________ because it studies human behavior just like psychology and sociology.

• Applied Economics 

• Economics

• Social Science

• Physical Science

8. Which of the following is an example of an opportunity cost?

• The cost of producing a good

• The cost of consuming a good

• The cost of not producing a good

• The cost of not consuming a good

9. It is the use of the insights gained from economic theory and research to make better decisions and solve real-world problems.

• Applied Economics

• Economics   

• Social Science

• Physical Science

10. Which of the following is an example of a trade-off?

• Choosing to produce more of one good and less of another

• Choosing to consume more of one good and less of another

• Choosing to produce more of all goods

• Choosing to consume more of all goods