Economics Quiz

What is scarcity in economics?

• The abundance of resources to satisfy all human wants

• The basic economic problem of limited resources and unlimited wants

• The surplus of goods in the market

• The unlimited supply of natural resources

What does opportunity cost represent?

• The total cost of all alternatives

• The value of the next best alternative forgone

• The monetary cost of a decision

• The surplus gained from a decision

Which of the following best describes supply and demand?

• The relationship between the price of a good and its quality

• The relationship between the quantity of a good available and the desire of consumers to purchase it

• The total amount of goods produced in a year

• The amount of goods stored in a warehouse

What occurs at market equilibrium?

• The quantity supplied is greater than the quantity demanded

• The quantity demanded is greater than the quantity supplied

• The quantity supplied equals the quantity demanded

• The price of goods continues to fluctuate

What is inflation?

• The total monetary value of all goods and services produced within a country

• The rate at which the general level of prices for goods and services rises

• The actions taken by a central bank to control the money supply

• The organizational characteristics of a market

What does GDP stand for?

• Gross Domestic Product

• General Domestic Policy

• Government Development Plan

• Global Development Program

What is the primary goal of monetary policy?

• To measure the rate of inflation

• To control the money supply and interest rates

• To determine market structure

• To calculate GDP

Which policy involves government spending and tax policies?

• Monetary Policy

• Fiscal Policy

• Market Structure

• Elasticity

What is an example of a market structure?

• Inflation

• GDP

• Monopoly

• Elasticity

What does elasticity measure?

• The total value of goods and services produced

• The rate of price increase over time

• How much the quantity demanded or supplied responds to changes in price or income

• The actions of a central bank