Economics Pre-Quiz

What is the definition of Scarcity in economics?

• The value of the next best alternative that must be given up to obtain something.

• The limited availability of resources relative to unlimited human wants.

• The economic model that explains how the price and quantity of goods and services are determined in a market.

• The point at which the quantity supplied equals the quantity demanded.

What does Opportunity Cost refer to?

• The responsiveness of quantity demanded or supplied to a change in price.

• The value of the next best alternative that must be given up to obtain something.

• The additional cost of producing one more unit of a good or service.

• The total market value of all final goods and services produced within a country in a given period.

Which economic model explains how the price and quantity of goods and services are determined in a market?

• Supply and Demand

• Equilibrium

• Market Economy

• Fiscal Policy

What is Equilibrium in the context of economics?

• The responsiveness of quantity demanded or supplied to a change in price.

• The point at which the quantity supplied equals the quantity demanded.

• The additional revenue earned from selling one more unit of a good or service.

• The percentage of the labor force that is actively seeking employment but unable to find work.

What is a Market in microeconomics?

• The additional cost of producing one more unit of a good or service.

• A place where buyers and sellers come together to exchange goods and services.

• The responsiveness of quantity demanded or supplied to a change in price.

• The total market value of all final goods and services produced within a country in a given period.

What does Elasticity measure in economics?

• The additional revenue earned from selling one more unit of a good or service.

• The responsiveness of quantity demanded or supplied to a change in price.

• The value of the next best alternative that must be given up to obtain something.

• The percentage of the labor force that is actively seeking employment but unable to find work.

What is Marginal Cost?

• The additional cost of producing one more unit of a good or service.

• The additional revenue earned from selling one more unit of a good or service.

• The total market value of all final goods and services produced within a country in a given period.

• The responsiveness of quantity demanded or supplied to a change in price.

What does Marginal Revenue refer to?

• The additional cost of producing one more unit of a good or service.

• The additional revenue earned from selling one more unit of a good or service.

• The responsiveness of quantity demanded or supplied to a change in price.

• The value of the next best alternative that must be given up to obtain something.

What does Gross Domestic Product (GDP) measure?

• The responsiveness of quantity demanded or supplied to a change in price.

• The total market value of all final goods and services produced within a country in a given period.

• The additional cost of producing one more unit of a good or service.

• The percentage of the labor force that is actively seeking employment but unable to find work.

What is Inflation?

• The percentage of the labor force that is actively seeking employment but unable to find work.

• A sustained increase in the general price level of goods and services in an economy over time.

• The additional revenue earned from selling one more unit of a good or service.

• The responsiveness of quantity demanded or supplied to a change in price.