Microeconomics Review Quiz

Which of the following best describes the purpose of an economy?

• To manage the production and allocation of resources

• To establish laws and regulations

• To provide entertainment to people

• To create new languages

Which of the following is NOT one of the three basic economic questions?

• What to produce?

• How to produce?

• Where to produce?

• For whom to produce?

Samuel is studying different ways countries organize their economies. He learns that in some countries, the government makes all the economic decisions. Which of the following is a type of economic system that describes this situation?

• Command economy

• Democratic economy

• Social economy

• Political economy

Isla is starting a new bakery. She needs a place to set up her shop, workers to help bake and sell goods, money to buy equipment, and her own ideas to run the business. These resources are known as:

• Market structures

• Factors of production

• Economic systems

• Government roles

In a small town, there is only one company that supplies electricity to all the residents. Which market structure does this situation represent?

• Perfect competition

• Oligopoly

• Monopoly

• Monopolistic competition

Which of the following best describes the government's function in a mixed economic system?

• To control all means of production

• To balance free market activity with regulations

• To abolish competition

• To determine consumer preferences

Emma is starting a bakery and needs to buy ovens, mixers, and rent a building for her business. Which factor of production do these items represent?

• Land

• Labor

• Capital

• Entrepreneurship

Sophia lives in a small village where people make decisions about what to produce, how to produce, and for whom to produce based on customs passed down through generations. Which economic system does Sophia's village most likely use to answer the three economic questions?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

In which market structure do many firms sell similar but not identical products?

• Monopoly

• Oligopoly

• Monopolistic competition

• Perfect competition

Which of the following best describes the concept of scarcity?

• Unlimited resources for limited wants

• Limited resources for unlimited wants

• Equal distribution of resources

• Surplus of goods and services