Economics Quiz

Which of these factors directly affects the inflation rate?

• Wage growth

• Tax cuts

• An increase in the money supply

• The amount of exported goods

Why does "commodity money " have value?

• Because they can only be used for exchange

• They have intrinsic value

• They are regulated by the government

• Their production is expensive

Which example demonstrates the trade-off between efficiency and equality?

• Introducing a progressive tax

• Increasing the minimum wage

• Building new factories

• Simplifying customs procedures

What happens if the government sets a maximum price below the equilibrium price?

• Market equilibrium

• Shortage

• Surplus

• Decreased demand

Which commodity was used as commodity money in the past?

• Watches

• Salt

• Oil

• Stones

What problem does the introduction of money solve compared to a barter system?

• The demand problem

• The double coincidence of wants problem

• The competition problem

• The value problem

Why are goods with low price elasticity of demand advantageous for taxation?

• Because they are accessible to everyone

• Because their demand does not change much with a price change

• Because they are luxury items

• Because their production is cheaper

Which of these factors shifts the supply curve?

• Changes in preferences

• Technological change

• Increase in income

• Decrease in prices of substitute goods

What happens to the market price if demand exceeds supply?

• The price falls

• The price rises

• The price remains stable

• Sellers reduce product quality

Which of these characteristics does not apply to a command economy?

• High level of equality

• Competition between producers

• Production planning

• Government distribution of resources