Economics Quiz

Which of the following is NOT one of the three central coordination problems any economy must solve?

• What, and how much, to produce

• How to produce it

• For whom to produce it

• When to produce it

Which of the following is a central coordination problem in economics?

• How to distribute wealth

• How to produce it

• How to manage resources

• How to control inflation

What does microeconomics study?

• The study of how the entire economy works

• The study of how individuals make economic decisions within a society

• The study of international trade

• The study of government policies

Which of the following is NOT a focus of microeconomics?

• How will changes in income or prices affect consumer demand?

• Do firms wish to maximise sales profits or market share?

• Inflation, unemployment, Gross Domestic Product

• What factors influence costs?

What does macroeconomics study?

• The study of how individuals make economic decisions within a society

• The study of how the entire economy works

• The study of consumer behavior

• The study of market structures

What does scarcity mean in economic terms?

• The goods available are too many to satisfy individuals' desires

• The goods available are too few to satisfy individuals' desires

• The goods available are exactly enough to satisfy individuals' desires

• The goods available are irrelevant to individuals' desires

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital goods

• Technology

What does economics study?

• How people create new resources

• How people use means to achieve their goals

• How people waste resources

• How people ignore their wants

Why do resources need to be economized?

• Because resources are infinite

• Because resources are finite

• Because resources are irrelevant

• Because resources are abundant

What does the term "trade-offs" mean in economics?

• The benefits of the next best alternative

• Making one choice means other choices become unavailable

• The additional cost over and above costs already incurred

• The additional benefit above what has already accrued