Economics Quiz

What is the study of economics mainly concerned with?

• The process of producing goods

• The study of money

• The study of choices under scarcity

• The use of natural resources for free

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Money

Opportunity cost includes:

• Only the money spent

• The value of the best forgone alternative

• The time spent only

• All other options

Which of the following best describes 'market failure'?

• When prices increase too fast

• When resources are not allocated efficiently

• When producers go on strike

• When consumers stop buying

In a command economy, decisions are made by:

• Private companies

• Consumers

• Government planners

• Shareholders

Which of the following is a tangible good?

• Legal advice

• Insurance

• A car

• Haircut

Which concept means 'giving up one thing to get another'?

• Demand

• Marginal utility

• Trade-off

• Causation

An economic model is primarily used to:

• Create policies

• Describe relationships between variables

• Distribute goods

• Set prices

Which of the following is an example of positive economics?

• The government should reduce taxes

• The economy is growing at 2% per year

• Unemployment is unfair

• We should invest more in healthcare

Which best describes a mixed economy?

• Only private sector decisions

• Only public sector planning

• Both private and government sector allocate resources

• No involvement from government