Economics Quiz

Economics is primarily concerned with the study of:

• Scarcity and choice

• Wealth and poverty

• Production only

• Demand and supply only

The branch of economics that deals with the individual units of the economy is:

• Microeconomics

• Macroeconomics

• International economics

• Financial economics

An example of a free good is:

• Water in a river

• Packaged water

• Electricity

• Petrol

In a market economy, prices are determined by:

• Government agencies

• The interaction of demand and supply

• Business owners

• Trade unions

The factors of production include:

• Land, labor, capital, and enterprise

• Rent, wages, profit, and interest

• Goods, services, demand, and supply

• Money, machines, resources, and land

The opportunity cost of choosing one good over another is the:

• Monetary cost of the chosen good

• Next best alternative foregone

• Total cost of all alternatives

• Cost of production of the good

When quantity demanded equals quantity supplied, it is called:

• Disequilibrium

• Market equilibrium

• Surplus

• Shortage

The law of demand states that, other things being equal:

• Demand rises as prices fall

• Demand falls as prices rise

• Demand is unaffected by price

• Demand remains constant

A movement along the demand curve is caused by changes in:

• Price

• Income

• Consumer taste

• Number of sellers

In economic terms, inflation is best described as:

• An increase in prices over time

• A decrease in prices over time

• A rise in employment

• A decline in gross domestic product