Economic Concepts Quiz

What is the concept of supply and demand?

• Producers are willing to produce a given amount of a good and consumers are willing to buy a different amount

• Producers are willing to produce a given amount of a good and consumers are not willing to buy

• Producers are not willing to produce a given amount of a good and consumers are willing to buy

• Producers are not willing to produce a given amount of a good and consumers are not willing to buy

What does elasticity measure?

• The degree to which the quantity demanded changes when the price is altered

• The degree to which the quantity supplied changes when the price is altered

• The degree to which the quantity demanded changes when the income is altered

• The degree to which the quantity supplied changes when the income is altered

What is a monopoly?

• A market with only one firm producing goods

• A market with multiple firms producing goods

• A market with only one consumer

• A market with multiple consumers

What is a tariff?

• A tax placed on the import or export of a good

• A limit on the amount of a good that may be imported

• A tax placed on the export of a good

• A limit on the amount of a good that may be exported

What are the classical factors of production?

• Land, labor, and capital

• Land, labor, and entrepreneurship

• Labor, capital, and entrepreneurship

• Land, capital, and entrepreneurship

What is the unemployment rate?

• The percentage of the population that is actively seeking work but cannot find a job

• The percentage of the population that is not actively seeking work

• The percentage of the population that is employed

• The percentage of the population that is retired

What does Gross Domestic Product (GDP) measure?

• The size of a country's or state's economy

• The total consumption of a country or state

• The total investment in a country or state

• The total government expenditures in a country or state

What is the inflation rate?

• The pace at which prices are rising

• The pace at which prices are falling

• The pace at which the economy is growing

• The pace at which the economy is shrinking

What is the interest rate?

• The amount one must pay to use somebody else's money for a given period of time

• The amount one must pay to use their own money for a given period of time

• The amount one must pay to use somebody else's money indefinitely

• The amount one must pay to use their own money indefinitely

What is comparative advantage?

• The idea that every pair of potential trading partners can benefit by trade if they are producing at least two goods

• The idea that every pair of potential trading partners can benefit by trade if they are producing only one good

• The idea that every pair of potential trading partners can benefit by trade if they are producing multiple goods

• The idea that every pair of potential trading partners cannot benefit by trade