Economics Quiz

Economics is the study of what kind of exchanges?

• Cultural exchanges

• Economic exchanges

• Social exchanges

• Political exchanges

Which of these is a question economics tries to answer?

• How to dance

• How to produce it

• How to sing

• How to paint

What does scarcity mean?

• There are too many goods available

• There are too few goods available

• Everyone has everything they want

• Resources are unlimited

What does it mean when resources are finite?

• Resources are unlimited

• Resources are limited

• Resources are always available

• Resources are infinite

Why do people substitute away from a good when its price rises?

• Because they can find other goods.

• Because they like the good more.

• Because the good becomes more valuable.

• Because the good becomes cheaper.

What is the main focus of the law of demand?

• The relationship between price and quantity demanded.

• The relationship between price and supply.

• The relationship between supply and demand.

• The relationship between goods and services.

What is the result of opposing dynamic forces in a market?

• Equilibrium

• Constant change

• No change

• Only supply increases

What is the term for when there is more demand than supply?

• Excess supply

• Excess demand

• Market equilibrium

• Price decrease

What does division of labour apply to?

• Only to labour

• Only to land

• Land, capital goods, and labour

• Only to capital goods

What is more productive than human effort in isolation?

• Division of labour

• Working alone

• Ignoring tasks

• Doing everything yourself