Economics Quiz

What is the primary focus of economics?

• The study of historical events

• The study of choices and scarcity

• The study of languages

• The study of physical sciences

Into which two main parts is economics divided?

• Microeconomics and Sociology

• Macroeconomics and Psychology

• Microeconomics and Macroeconomics

• Sociology and Psychology

What does microeconomics study?

• The performance of national economies

• The choices of individuals and businesses

• The history of economic thought

• The impact of technology on society

What are the two main questions economics asks?

• How to maximize profits and minimize costs

• What, how, and for whom goods and services are produced; and how self-interest promotes social interest

• How to increase population and decrease unemployment

• What is the best form of government and how to implement it

What is self-interest?

• Choices made for the benefit of society

• Choices made in one's own interest

• Choices made for environmental sustainability

• Choices made for historical preservation

What are social interests?

• Choices that benefit only individuals

• Choices that are best for society as a whole

• Choices that focus on technological advancement

• Choices that prioritize economic growth

What are the two sectors into which social interest is divided?

• Efficiency and Growth

• Equity and Development

• Efficiency and Equity

• Growth and Sustainability

What is one of the key ideas that define the economic way of thinking?

• A choice is a tradeoff

• A choice is always beneficial

• A choice is predetermined

• A choice is irrelevant

What is a competitive market?

• A market with a single buyer or seller

• A market with many buyers and sellers

• A market with only sellers

• A market with only buyers

What does the law of demand state?

• Higher price leads to higher quantity demanded

• Higher price leads to lower quantity demanded

• Lower price leads to lower quantity demanded

• Price does not affect quantity demanded