Economics Quiz

What is the process of developing models in economics that includes the need to make assumptions?

• Thinking like an economist

• Specialisation and division of labour

• Production possibility frontiers

• Free market economy

What assumption is used in building economic models?

• Opportunity cost

• Ceteris paribus

• Scarcity

• Value judgement

What is the distinction between positive and normative economic statements?

• The role of the state in a mixed economy

• The use of production possibility frontiers

• The use of ceteris paribus in models

• The difference between factual and value-based statements

What is the economic problem related to unlimited wants and finite resources?

• Specialisation

• Scarcity

• Production possibility

• Free market

What is the importance of opportunity costs to economic agents?

• It helps in making scientific experiments

• It influences economic decision making and policy

• It helps in efficient allocation of resources

• It distinguishes between capital and consumer goods

What do production possibility frontiers depict?

• The functions of money

• The role of the state in a mixed economy

• The maximum productive potential of an economy

• The distinction between free market and command economy

What is the distinction between renewable and non-renewable resources?

• The use of ceteris paribus

• The difference in resource availability over time

• The role of value judgements

• The functions of money

What is the role of the state in a mixed economy?

• To make scientific experiments

• To influence economic decision making

• To balance free market and command economy elements

• To depict production possibility frontiers

What is one of the underlying assumptions of rational economic decision making for consumers?

• Consumers aim to minimize costs

• Consumers aim to maximize utility

• Consumers aim to increase taxes

• Consumers aim to reduce supply

What concept explains how the shape of the demand curve is influenced?

• Increasing marginal utility

• Diminishing marginal utility

• Constant marginal utility

• Fluctuating marginal utility