Fundamentals of Economics Quiz

This is the fundamental law of economics that asserts once the price of a good increases, so too does its production.

• Law of Demand

• Law of Supply

• Law of Diminishing Returns

• Law of Opportunity Cost

This is the fundamental law of economics that asserts once the price of a good increases, its consumption decreases.

• Law of Supply

• Law of Demand

• Law of Diminishing Marginal Utility

• Law of Comparative Advantage

In an economy, this is the amount of a good or service purchased or desired for purchase by consumers.

• Supply

• Demand

• Equilibrium

• Surplus

This book articulated and codified the foundational beliefs of modern free-market economics.

• "The Wealth of Nations"

• "Das Kapital"

• "The General Theory of Employment, Interest, and Money"

• "Capitalism and Freedom"

This is the concept that profit-driven individuals will provide for society’s needs.

• Invisible Hand

• Comparative Advantage

• Opportunity Cost

• Marginal Utility

This is the practice of eliminating tariffs in order to maximize regional and interregional commercial trade.

• Protectionism

• Free Trade

• Mercantilism

• Subsidization

This fundamental principle of free market economics ensures that a variety of suppliers will result in equilibrium price and high(er) production quality.

• Monopoly

• Competition

• Oligopoly

• Price Fixing

This is the study of economics concerned with the single factors and decisions of individuals.

• Macroeconomics

• Microeconomics

• Econometrics

• Behavioral Economics

This is an internal or external drive that motivates or encourages one to do something.

• Incentive

• Constraint

• Barrier

• Disincentive

This French term means ‘hands off,’ often referring to a lack of government interference in the economy.

• Déjà vu

• Laissez-faire

• Savoir-faire

• Carte blanche