Econ Quiz

Which of the following best describes the concept of scarcity in economics?

• Unlimited resources and limited wants

• Limited resources and unlimited wants

• Limited wants and limited resources

• Unlimited resources and unlimited wants

What is the opportunity cost of choosing to spend time studying for an economics exam instead of going to a concert?

• The money spent on the concert ticket

• The enjoyment and experience of the concert

• The time spent studying

• The cost of the textbooks

Which of the following is a microeconomic principle?

• National unemployment rates

• Inflation rates

• Supply and demand in individual markets

• Gross Domestic Product (GDP)

What does the production possibility frontier (PPF) curve illustrate?

• The maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilised

• The relationship between supply and demand

• The impact of inflation on economic growth

• The distribution of income within an economy

Which of the following is considered a macroeconomic indicator?

• Price elasticity of demand

• Consumer preferences

• National income

• Individual firm production costs

In marginal analysis, what does the term "marginal" refer to?

• The total cost of production

• The additional or incremental change

• The average cost of production

• The fixed cost of production

Which of the following best describes the concept of opportunity cost?

• The cost of an alternative that must be forgone to pursue a certain action

• The total cost of all resources used in production

• The cost of labour in the production process

• The cost of raw materials

What does the term "scarcity" imply in economics?

• Resources are abundant and can meet all human wants

• Resources are limited and cannot meet all human wants

• Human wants are limited and can be easily satisfied

• Resources are unlimited and can meet all human wants

Which of the following is an example of a macroeconomic factor?

• The price of a specific brand of shoes

• The interest rate set by the central bank

• The cost of raw materials for a single company

• The wage rate for a specific job

What does the slope of the production possibility frontier (PPF) represent?

• The opportunity cost of one good in terms of the other

• The total production capacity of an economy

• The level of unemployment in an economy

• The rate of inflation in an economy