Economics Quiz

An economy's production possibilities curve could shift outward as a result of an:

• Opportunity Cost

• Increased Level of Technology

• Private Property

• Inflation

Which one of the following is a characteristic of capitalism but not of communism?

• Full Government Involvement

• Private Property

• Classless Society

• Social Equality

Which of the following is true of scarcity?

• It is a basic problem of economics that affects all nations

• Consumers make the products

• It causes an outward shift of the production possibilities curve

• It limits the amount of goods consumers can purchase

In a market economy, the goods produced go to:

• Everyone

• Those who have sufficient income and are willing to pay the price asked for those goods

• Those who own credit cards

• Nobody

What is the fundamental condition of economics that results from the combination of limited resources and unlimited resources?

• Opportunity Cost

• Economist

• Allocate

• Scarcity

The branch of economics which studies how households and firms make choices, interact in markets and how government attempts to influence their choices is called:

• Macroeconomics

• Positive economics

• Microeconomics

• Normative economics

What causes companies/producers to raise their prices on products?

• Competition

• Bartering

• Trading

• Inflation

Someone who studies the reasoning behind decisions people make and is interested in using data to boost profits, create better public policy or conduct research is called a:

• Consumer

• Producer

• Customer

• Economist

________________ is used to produce existing products more efficiently or of higher quality.

The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called:

• Normative economics

• Macroeconomics

• Microeconomics

• Public economics