Price Theory Quiz

What is the primary focus of price theory in microeconomics?

• National income determination

• Behavior of producers, consumers, markets, and factor owners

• International trade policies

• Government taxation systems

Which branch of economics studies small units like firms, industries, and households?

• Macroeconomics

• Microeconomics

• Applied economics

• Normative economics

In economics, “what ought to be” refers to:

• Positive economics

• Normative economics

• Applied economics

• Descriptive economics

Which of the following is an example of applied economics?

• Studying unemployment rates

• Agricultural economics

• Analyzing inflation trends

• Calculating GDP

Which quadrant of knowledge does economics belong to?

• Natural sciences

• Arts and skills

• Social sciences

• Physics and metaphysics

Positive economics focuses on:

• Ethical judgments

• Descriptive facts

• Future predictions only

• Value-based decisions

Which is the mechanism that allocates scarce resources in the economy?

• Government regulation

• Price system

• Tax policy

• Labor unions

Which of the following is NOT a role of consumers in the economy?

• Representing demand

• Consuming goods and services

• Maximizing satisfaction

• Producing goods

Firms’ main behavioral motive is to:

• Maximize income

• Maximize profit

• Maximize satisfaction

• Minimize production costs

Factory owners’ main behavioral motive is to:

• Maximize profit

• Maximize income

• Minimize costs

• Improve product quality