Econ Quiz for K

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

• It increases

• It decreases

• It remains the same

• It fluctuates randomly

Which market structure is characterised by a single seller and no close substitutes for the product?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

What is the term for the tax imposed on imported goods?

• Subsidy

• Tariff

• Quota

• Embargo

Which economic system is based on supply and demand with little or no government control?

• Command economy

• Mixed economy

• Market economy

• Traditional economy

What is the general increase in prices and fall in the purchasing value of money called?

• Deflation

• Inflation

• Stagflation

• Recession

Which of the following is a tool of fiscal policy?

• Interest rates

• Government spending

• Exchange rates

• Money supply

What is the primary function of money in an economy?

• To act as a medium of exchange

• To provide entertainment

• To create wealth

• To measure temperature

Which of the following is a primary market where new stock issues are sold to investors?

• Secondary market

• Primary market

• Tertiary market

• Quaternary market

What does a balance sheet primarily show?

• The profit and loss of a company

• The financial position of a company at a specific point in time

• The cash flow of a company

• The market share of a company

What is the formula for calculating profit?

• Revenue - Expenses

• Assets - Liabilities

• Income - Taxes

• Sales - Costs