University-Level Economics and Finance Quiz

What is the basic economic problem that arises because resources are limited?

• Inflation

• Unemployment

• Scarcity

• Surplus

In a perfectly competitive market, firms are considered to be:

• Price makers

• Price takers

• Government regulated

• Monopoly owners

The law of demand states that, ceteris paribus, when the price of a good increases:

• Demand increases

• Demand decreases

• Supply decreases

• No effect on demand

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Price

GDP stands for:

• Gross Domestic Price

• General Development Policy

• Gross Domestic Product

• Global Domestic Production

Inflation refers to:

• A decrease in money supply

• A sustained increase in the general price level

• The total market value of all goods

• A rise in wages

Which type of economic system is characterized by private ownership and free markets?

• Communism

• Capitalism

• Socialism

• Traditional Economy

The Phillips Curve represents the relationship between:

• Inflation and employment

• Inflation and unemployment

• Demand and supply

• Taxes and government spending

What is the opportunity cost?

• The financial cost of a decision

• The value of the next best alternative forgone

• The amount of money spent on production

• The total cost of all alternatives

A market structure where one firm dominates the industry is called:

• Oligopoly

• Perfect competition

• Monopoly

• Monopolistic competition