Econ Quiz for Irish Students

Match the following scenarios with their outcomes when the price of a good decreases, assuming all other factors remain constant.

• Quantity supplied of a good

• It decreases

• Price elasticity of demand

• It fluctuates randomly

• Market equilibrium

• It remains the same

• Quantity demanded of a good

• It increases

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

What is the primary goal of monetary policy?

• To control inflation and stabilise the currency

• To increase government spending

• To reduce taxes

• To regulate monopolies

In the context of supply and demand, what is meant by 'equilibrium price'?

• The highest price a consumer is willing to pay

• The price at which the quantity supplied equals the quantity demanded

• The lowest price a producer is willing to accept

• The average price of a good over a year

Which market structure is characterised by a single firm that controls the entire market?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

What is the effect of a subsidy on the supply curve of a good?

• It shifts the supply curve to the left

• It shifts the supply curve to the right

• It causes the supply curve to become vertical

• It has no effect on the supply curve

Which of the following is an example of fiscal policy?

• Adjusting the interest rate

• Increasing government spending on infrastructure

• Regulating the money supply

• Controlling the exchange rate

In a monopolistic competition, firms differentiate their products through:

• Price only

• Quality, branding, and advertising

• Quantity only

• Government regulations

What is the law of supply?

• 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 of the following is a characteristic of an oligopoly?

• Many small firms

• A single firm

• A few large firms that dominate the market

• No barriers to entry