Economics Quiz

Which branch of economics studies individual consumers, producers, and resource owners?

• Macroeconomics

• Econometrics

• Microeconomics

• Applied economics

Inflation refers to:

• An increase in the average price of goods and services

• A decrease in the average price of goods and services

• A government subsidy program

• An increase in employment rate

Which statement best explains scarcity?

• There are unlimited resources for unlimited wants.

• Resources are insufficient to meet the unlimited wants of society.

• People can buy everything they want.

• Prices are always stable.

A local cooperative is deciding how to allocate its limited funds between buying new machinery and increasing workers’ salaries. Which economic concept is being applied?

• Law of supply

• Scarcity and choice

• Inflation rate

• Price elasticity

If a company uses past sales data and marketing research to decide on production levels, it is applying:

• Microeconomics

• Macroeconomics

• Econometrics

• Circular flow model

Which of the following best differentiates microeconomics from macroeconomics?

• Microeconomics studies national policies; macroeconomics studies households.

• Microeconomics studies individual markets; macroeconomics studies the whole economy.

• Microeconomics focuses on inflation; macroeconomics focuses on production costs.

• Microeconomics looks at unemployment; macroeconomics looks at demand for a single product.

In the circular flow of income, households and firms interact in two main markets. These are:

• Labor market and foreign exchange market

• Goods and services market, and factor market

• Stock market and capital market

• Consumer market and agricultural market

A policymaker wants to reduce unemployment. Which approach reflects applied economics?

• Developing a theoretical model without testing it

• Analyzing labor market data to create job programs

• Ignoring statistical evidence and making random decisions

• Studying ancient economic history

If you were tasked to solve the problem of rising food prices in your community, which of the following is the most appropriate first step based on applied economics principles?

• Reduce the price without studying the market

• Conduct a study on supply, demand, and production costs

• Stop importing food products

• Increase taxes on farmers

Which of the following is not considered an economic resource?

• Land

• Labor

• Technology

• Unlimited time