1. Economics Quiz

What is the primary purpose of a business?

• To provide employment to the local community

• To make a profit by providing goods and services desired by its customers

• To engage in trade without the intent of making a profit

• To solely improve technology within the economy

Which of the following is considered a factor of production?

• Consumer preferences

• Annual profit

• Entrepreneurship

• Marketing strategies

What does macroeconomics study?

• The behavior of individual households and firms

• The decision-making processes of single businesses

• The economy as a whole, focusing on large-scale economic phenomena

• Only the stock market and financial institutions

Which type of unemployment is associated with the economic downturns?

• Frictional

• Structural

• Cyclical

• Seasonal

A market structure characterized by many sellers and similar products is known as:

• Monopoly

• Oligopoly

• Monopolistic competition

• Perfect competition

Which economic system is characterized by the government owning virtually all resources and making all economic decisions?

• Socialism

• Communism

• Capitalism

• Mixed economy

What does the term 'market dynamics' refer to?

• The regulations imposed by the government on financial markets

• The forces of supply and demand that shape the market activities

• The marketing strategies used by businesses to outperform their competitors

• The global influences that affect local market conditions

What role does technology play in a business environment?

• It is only relevant in the information technology sector

• It creates challenges that businesses cannot overcome

• It helps solve production and organizational problems, enhancing productivity

• It is unrelated to the profitability of a business

Which of the following best describes the economic concept of 'demand'?

• The quantity of a product that the government is willing to purchase

• The total inventory a business has at the end of the fiscal year

• The quantity of a good or service that people are willing to buy at various prices

• The ability of a business to supply products to a market

What is a primary effect of inflation?

• Decrease in the general price level of goods and services

• Increase in the purchasing power of money

• General upward movement of prices, reducing the purchasing power

• Stabilization of economic growth and employment rates