Econ Final Exam Quiz

What happens to the quantity demanded of a good when its price increases, assuming all other factors remain constant?

• It increases.

• It decreases.

• It remains the same.

• It becomes zero.

Which of the following best describes a perfectly competitive market?

• A market with a single seller.

• A market with many buyers and sellers, where no single entity can influence the price.

• A market with a few large firms dominating the industry.

• A market where firms have significant control over prices.

In a command economy, who primarily makes the economic decisions?

• Individual consumers.

• Private businesses.

• The government.

• Foreign investors.

What is the primary purpose of tariffs in international trade?

• To increase the volume of imports.

• To protect domestic industries from foreign competition.

• To encourage foreign investment.

• To reduce government revenue.

Which of the following is a key indicator of macroeconomic performance?

• Individual consumer preferences.

• The number of firms in a market.

• Gross Domestic Product (GDP).

• The price of a single good.

What does the law of supply state?

• As the price of a good increases, the quantity supplied decreases.

• As the price of a good increases, the quantity supplied increases.

• As the price of a good decreases, the quantity supplied increases.

• The quantity supplied is independent of the price.

Which market structure is characterized by a single seller?

• Perfect competition.

• Monopolistic competition.

• Oligopoly.

• Monopoly.

What is the main characteristic of a mixed economy?

• It relies entirely on free markets.

• It relies entirely on government planning.

• It combines elements of both free markets and government planning.

• It does not involve any form of economic planning.

Which of the following is an example of a trade barrier?

• Free trade agreement.

• Tariff.

• Currency exchange.

• Trade surplus.

What is the primary focus of microeconomics?

• The overall performance of the economy.

• The behavior of individual consumers and firms.

• The study of international trade.

• The role of government in the economy.