What does price elasticity of demand measure?

The responsiveness of quantity demanded to a change in price

The responsiveness of quantity supplied to a change in price

The change in price due to a change in demand

The change in demand due to a change in supply

What is the main purpose of economic indicators?

To measure the performance of an economy

To determine the value of a currency

What happens to the equilibrium price if there is an increase in demand while supply remains constant?

The equilibrium price increases

The equilibrium price decreases

The equilibrium price remains the same

The equilibrium price becomes zero

What does the term "aggregate demand" refer to?

The total demand for goods and services in an economy

The total supply of goods and services in an economy

The demand for a single good or service

The supply of a single good or service

Which of the following is NOT a factor that can shift the supply curve?

Changes in consumer preferences

Changes in production technology

Changes in the number of sellers

In the context of the basic economic problem, what does "opportunity cost" refer to?

The cost of the next best alternative foregone

The total cost of all alternatives

The cost of producing a good or service

The cost of resources used in production

Which of the following best describes a monopolistic competition market structure?

Many firms selling differentiated products

Many firms selling identical products

Few firms selling differentiated products

One firm selling a unique product

What does the term "economic flows" refer to?

The movement of money and resources in an economy

The movement of goods and services in an economy

The movement of labour in an economy

The movement of capital in an economy

What is the effect of an increase in supply while demand remains constant?

The equilibrium price decreases

The equilibrium price increases

The equilibrium price remains the same

The equilibrium price becomes zero

What is the primary function of the financial sector in the 5 sector economic flow model?

To facilitate savings and investments

To regulate international trade

What is the main purpose of the Consumer Price Index (CPI)?

To measure the average change in prices paid by consumers

To measure the total output of an economy

To measure the level of unemployment

To measure the total income of households

In the context of the basic economic problem, what does "scarcity" refer to?

The limited availability of resources

The unlimited wants of consumers

What does the term "economic indicators" refer to?

Statistics that measure economic performance

Policies that regulate the economy

Theories that explain economic behaviour

Tools used to predict stock market trends

In the context of the 5 sector economic flow model, what is the role of the government sector?

To collect taxes and provide public goods and services

To facilitate international trade

To manage savings and investments

What is the effect of an increase in both supply and demand on the equilibrium price?

The effect on equilibrium price is indeterminate

The equilibrium price increases

The equilibrium price decreases

The equilibrium price remains the same

Which of the following is an example of a good with unitary elasticity?

A good where a 10% increase in price leads to a 10% decrease in quantity demanded

A good where a 10% increase in price leads to a 5% decrease in quantity demanded

A good where a 10% increase in price leads to a 15% decrease in quantity demanded

A good where a 10% increase in price leads to no change in quantity demanded

Econ Basics Quiz

Authored by Nicolle Culey

Business

12th Grade

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40 questions

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the law of demand?

As the price of a good increases, the quantity demanded increases.

As the price of a good increases, the quantity demanded decreases.

As the price of a good decreases, the quantity demanded decreases.

There is no relationship between price and quantity demanded.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a characteristic of a perfectly competitive market?

Many buyers and sellers

Homogeneous products

Barriers to entry

Perfect information

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does GDP stand for?

Gross Domestic Product

General Domestic Product

Gross Development Product

General Development Product

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the basic economic problem?

Unlimited resources and limited wants

Limited resources and unlimited wants

Unlimited resources and unlimited wants

Limited resources and limited wants

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the circular flow model, which sector provides labour to firms?

Government

Households

Financial institutions

Overseas sector

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a market force?

Supply

Demand

Government intervention

Equilibrium

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the equilibrium market price?

The price at which quantity supplied equals quantity demanded

The highest price a consumer is willing to pay

The lowest price a producer is willing to accept

The price at which supply exceeds demand

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Econ Basics Quiz

What is the law of demand?

Which of the following is NOT a characteristic of a perfectly competitive market?

What does GDP stand for?

What is the basic economic problem?

In the circular flow model, which sector provides labour to firms?

Which of the following is NOT a market force?

What is the equilibrium market price?

What does price elasticity of demand measure?

Which of the following is a component of Aggregate Demand?

What is the formula for calculating GDP using the expenditure approach?

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