Econ Fundamentals Quiz

What type of market structure is characterized by a single seller and no close substitutes for the product?

• Monopolistic competition

• Oligopoly

• Monopoly

• Perfect competition

Tags

DOK Level 1: Recall

What does the economic principle of scarcity imply?

• Resources are unlimited and desires must be controlled

• Resources are limited and cannot satisfy all human wants

• Government intervention is necessary in all economic markets

• Economic systems do not influence individual choices

Tags

DOK Level 1: Recall

What is an opportunity cost?

• The cost of not choosing the second-best alternative

• The total cost of choosing one alternative over others

• The benefit derived from a chosen alternative

• The cost associated with a missed opportunity

Tags

DOK Level 1: Recall

In economics, what does the term "trade-off" mean?

• The exchange rate between two currencies

• The act of buying and selling goods

• Making a decision to give up one thing in return for something else

• A type of market where stocks are traded

Tags

DOK Level 1: Recall

What is the law of demand?

• As the price of a good increases, the supply also increases

• As the price of a good increases, the demand decreases

• As the price of a good decreases, the supply decreases

• As the price of a good decreases, the demand remains constant

Tags

DOK Level 1: Recall

Which market structure is characterized by many sellers and differentiated products?

• Monopoly

• Oligopoly

• Monopolistic competition

• Perfect competition

Tags

DOK Level 1: Recall

What does a point inside the production possibilities curve represent?

• Efficient use of resources

• Inefficient use of resources

• Unattainable production

• Full employment of resources

Tags

DOK Level 2: Skill/Concept

If a country decides to produce more of good A, which necessarily causes a reduction in the production of good B, this scenario illustrates the concept of:

• Opportunity cost

• Demand

• Scarcity

• Trade-off

Tags

DOK Level 2: Skill/Concept

How does an increase in consumer income generally affect the demand curve for a normal good?

• It shifts to the left

• It shifts to the right

• It remains unchanged

• It becomes more elastic

Tags

DOK Level 2: Skill/Concept

What is likely to happen in a market with perfect competition in the long run?

• Firms will make substantial economic profits

• Firms will experience economic losses

• Firms will earn normal profits

• Firms will monopolize the market

Tags

DOK Level 2: Skill/Concept