Economics Quiz

Which factor of production best describes ovens purchased by a restaurant owner?

• Natural resources/land

• Entrepreneurship

• Physical capital

• Labor

When a small business owner takes a loan from the bank to expand their business, they are using which factor of production?

• Labor

• Capital

• Entrepreneurship

• Physical capital

How does economic decision-making differ between mixed and market economies?

• Consumers make economic decisions in a mixed economy, while consumers and government make economic decisions in a market economy

• Government makes all economic decisions in a mixed economy, while consumers make all economic decisions in a market economy

• Government and consumers make economic decisions in a mixed economy, while consumers make all economic decisions in a market economy

• Consumers make all economic decisions in a mixed economy, while the government makes all economic decisions in a market economy

What comparison can be made between command economies and market economies?

• Command economies lack central planners and rely on market factors

• Command economies are run by central planners and meet the needs of consumers

• Command economies fail to allocate resources or meet consumers' interest for set allocation of resources

• Command economies focus on the wants and needs of consumers by market demand

Market structure with least product differentiation?

• Monopoly

• Oligopoly

• Perfect competition

• Duopoly

Market structure with only a few competitors, for example, airlines and wireless cell phone providers?

• Monopoly

• Oligopoly

• Perfect competition

• Duopoly

A natural catastrophe or apple worm has destroyed a region's crop of apples. How would this most likely affect the supply and price of apples?

• Both the supply and price would increase

• Both the supply and price would decrease

• The supply would decrease, and the price would increase

• The supply would increase, and the price would decrease

All of the following can cause a shift on the demand curve except?

• Prices of related goods

• Cost of production

• Change in consumer tastes

• Cost of production

Based on the chart, what is the equilibrium price and why?

• $10, because it allows the company to clear its supply at that price

• $6, because more people are willing to buy the item at a lower price

• $8, because it allows the company to sell all of its stock without a shortage or surplus

• $12, because even if the company sells fewer items, the higher price generates more money

Which statement best explains the movement from S1 to S2 shown on this graph on the right?

• An increase in workers' salaries

• Technological improvements in production

• Higher costs for natural resources

• A decline in the production of a substitute good