Economics Quiz

What is the study of economics?

• The study of past civilizations

• The study of human behavior

• The study of resource allocation

• The study of languages

For any combinations of goods and services, what is needed in order for a producer to shift its Production Possibilities Frontier outward?

• Decrease in resources

• Technological advancement

• Increase in taxes

• Reduction in labor force

If a society wants to shift its Production Possibilities Frontier outward, what type of goods should the society put more of its resources toward?

• Consumer goods

• Capital goods

• Luxury goods

• Imported goods

Which of the following factors would cause the demand curve for a product to shift to the right?

• Decrease in consumer income

• Increase in consumer preferences

• Increase in the price of substitutes

• Decrease in population

What will cause movement along a demand curve?

• Change in consumer income

• Change in the price of the product

• Change in consumer preferences

• Change in the price of substitutes

Which of the following factors would cause the supply curve for a product to shift to the right?

• Increase in production costs

• Technological improvements

• Increase in taxes

• Decrease in the number of suppliers

If a producer’s PPF shifts outward, will that be reflected as a shift out of their supply curve or demand curve?

• Supply curve

• Demand curve

• Both supply and demand curves

• Neither supply nor demand curve

Graphically, what must be true if a large increase in demand for a product caused no change in the price of the product?

• Supply is perfectly elastic

• Demand is perfectly inelastic

• Supply is perfectly inelastic

• Demand is perfectly elastic

What happens when we have a surplus for a product?

• Prices increase

• Prices decrease

• Demand increases

• Supply decreases

What happens when we have a shortage for a product?

• Prices decrease

• Prices increase

• Demand decreases

• Supply increases