Economics Quiz

 Which one of the following will cause a movement along the demand curve in the market for rice?  

• An increase in the global population  

• An increase in real incomes  

• A decrease in the price of noodles  

• A decrease in the price of rice 

 Which one of the following is a central purpose of economic activity? The production of goods to:  

• Advance technology in a country 

• Satisfy the needs of consumers. 

• Ensure equitable access to utility. 

• Provide tax revenue for the government 

 Which one of the following is a positive economic statement?  

• A cut in social security benefits will increase incentives to work. 

• There needs to be an increase in defence spending. 

• The government should reduce the standard rate of income tax.

• The government ought to cut social security benefits. 

4.  Economic decision-makers are primarily concerned with:  

• Increasing international trade. 

• Reducing prices. 

• Maximising their welfare. 

• Increasing output. 

The basic economic problem is that: 

• Resources have to be allocated between competing uses.  

• Consumers have infinite wants.  

• Every economic decision generates externalities.  

• Governments cannot always deal effectively with market failure.  

Which one of the following statements is false? At all points on the production possibility curve:  

• Resources are fully employed. 

• The economy is working at its full potential. 

• There is productive efficiency. 

• Resources are allocated efficiently. 

An economist puts forward a hypothesis which is assessed against evidence. As a result of this, the hypothesis is accepted, rejected or modified. This is an example of: 

• How normative but not positive economic statements are tested.  

• How value judgements influence economic decision making.  

• The methodology used to test economic theories.  

• Why economics is a social not a natural science. 

The diagram below shows the demand curve (D) and the supply curve (S) in the market for tomatoes.  Which one of the following would result in a higher quantity consumed and a lower price charged for tomatoes?  

• A fall in the price of the fertiliser used to grow tomatoes  

• A hot summer causes consumers to eat more tomato salad  

• The minimum wage for farm workers is increased  

• The price of cucumbers falls 

Which of the following is not a form of capital?  

• Computers  

• Bank loans  

• Tools and equipment 

• Buildings 

The following diagram shows demand and supply in the market for roses. The demand for roses shifts from D1 to D2. Other things remaining the same, it can be concluded that:  

• Suppliers have pushed up the price of roses.  

• The higher price of roses will cause demand to fall back to D1.  

• The cost of fertiliser has fallen for the flower industry 

• There has been a shift in consumer preferences for roses