Economics Quiz

What is the primary concern of economists?

• Studying human wants and needs

• Focusing on the development of new technologies

• Understanding political systems

• Analyzing environmental factors

What does scarcity refer to in economics?

• Limited desires and wants

• Limited resources to meet unlimited wants

• Unlimited resources for limited wants

• Uncontrolled economic growth

Which of the following is NOT a basic definition of economics?

• Study of how people make choices with limited resources

• Study of the ways in which society produces goods and services

• Study of government regulation of businesses

• Study of human material wants and their satisfaction

What does microeconomics primarily focus on?

• National economic policies

• Broad economic aggregates

• Individual decision-making units like consumers and firms

• International trade relations

Which of the following is an example of a normative economic statement?

• "Healthcare should be provided free to all citizens."

• "The unemployment rate is 5%."

• "The inflation rate has decreased by 2%."

• "Consumers are buying more durable goods."

What does opportunity cost refer to?

• The money lost in economic transactions

• The value of the next best alternative forgone

• The total cost of producing goods and services

• The increase in income from economic activity

What does a monopoly market structure involve?

• Multiple firms competing for the same market

• A single firm controlling the market

• Perfect competition with no barriers to entry

• Many producers with no pricing power

What is a key characteristic of oligopoly?

• One producer dominates the market

• Few firms dominate the market

• No barriers to entry or exit

• Perfectly competitive market

Which term refers to the quantity of a good or service firms are willing to offer for sale at each price?

• Demand

• Supply

• Price elasticity

• Consumer surplus

What does the concept of marginal benefit refer to?

• The total satisfaction gained from a product

• The additional benefit received from consuming one more unit

• The total cost of consuming a product

• The cost of producing one more unit