Economics Quiz

Microeconomics vs. Macroeconomics: What does microeconomics primarily focus on?

• Individual economic agents and their interactions

• Overall economic aggregates and the entire economy

• Environmental sustainability

Scarcity and Opportunity Cost: If a country decides to allocate more resources to producing smartphones, what is the likely opportunity cost?

• More resources for education

• More resources for healthcare

• More resources for military defense

These are examples of stakeholders except

• Individuals

• Businesses

• Governments

• Society

• Media

Production Possibility Curve (PPC): A point inside the PPC indicates:

• Efficient use of resources

• Inefficiency and unemployment of resources

• Economic growth

Sustainability: What does economic sustainability refer to?

• Maximizing profits at any cost

• Meeting the needs of the present without compromising the ability of future generations to meet their own needs

• Minimizing production costs

Comparative Advantage: What does a country gain from specializing in the production of goods in which it has a comparative advantage?

• Higher opportunity cost

• Lower opportunity cost

• No impact on opportunity cost

Division of Labour and Specialization: In a production process, what is the main benefit of division of labor and specialization?

• Increased efficiency

• Higher production costs

• Lower product quality

Free Trade: What is a key argument in favor of free trade?

• Protection of domestic industries

• Promotion of economic self-sufficiency

• Increased efficiency and access to a variety of goods

Economies of Scale: As a company increases its production output, what may happen to its average cost per unit?

• Increase

• Remain constant

• Decrease

Tariffs and Duties: What is the purpose of imposing tariffs on imported goods?

• To promote international cooperation

• To protect domestic industries from foreign competition

• To encourage free trade