Principios Económicos: Cuestionario

What does economics study?

• The development of monetary policies to control inflation and interest rates.

• The regulation of business practices to ensure ethical corporate behavior.

• The management of financial assets and investment portfolios in the markets.

• How to optimally distribute scarce resources.

The branch of economics that studies the performance of national economies and policies is known as:

• Microeconomics

• Study of Ceteris Paribus

• Circular Flow

• Macroeconomics

The branch of economics that studies individual decision-making (choice behavior) is known as:

• Circular Flow

• Study of Ceteris Paribus

• Microeconomics

• Macroeconomics

After graduating, you have decided to accept a position at the Europe Travel Office for €50,000 a year. The other offer you received was to work for Iberia for €32,000. What is the opportunity cost of accepting the position at the Europe Travel Office?

• The opportunity cost is €32,000, which is the salary you would have received working for Iberia.

• The opportunity cost is the difference between the two salaries, €18,000.

• The opportunity cost is €50,000 because that is what you will earn.

• The opportunity cost is €82,000 because you are considering both job offers together.

Economic scarcity arises from:

• The inefficiency of companies in producing enough goods and services.

• Unequal distribution of wealth among individuals.

• Restrictions imposed by the government on production and trade.

• Limited resources and unlimited desires.

Does scarcity mean a high price for a resource?

• True

• False

In the Circular Flow Diagram:

• Firms demand goods and services from households in the factor market.

• Households pay wages to firms in exchange for goods and services.

• Firms supply factors of production in exchange for wages.

• Firms demand factors of production in exchange for wages.

A shortage is when:

• The price is higher than the equilibrium price, producers will be willing to sell less than the equilibrium quantity, while consumers will want to buy less.

• The price is higher than the equilibrium price, producers will be willing to sell more than the equilibrium quantity, while consumers will want to buy more.

• The price is lower than the equilibrium price, producers will be willing to sell more than the equilibrium quantity, while consumers will want to buy less.

• The price is lower than the equilibrium price, producers will be willing to sell less than the equilibrium quantity, while consumers will want to buy more.

In a perfectly competitive market:

• Each seller can set a unique price.

• There is only one seller who controls the price.

• The goods and services exchanged are homogeneous.

• There are very few sellers.

The 'law of supply' states that, keeping other things constant:

• Companies will produce more of a good the higher its price.

• None of the above is correct.

• Companies will produce less of a good as its price increases.

• Companies will demand more production inputs to produce more.