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Economics Quiz 1

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Who is father of economics ?

a)

Marshall

b)

Robbins

c)

Adam Smith

d)

Ricardo

2.

Who Said, "Economics is a Science of wealth" ?

a)

Ricardo

b)

Marshall

c)

J. S. Mill

d)

Adam Smith

3.

Micro Economics includes:

a)

Individual unit

b)

Small unit

c)

individual price determination

d)

All of the above

4.

Willingness to pay for the want is_

a)

Need

b)

Demand

c)

Desire

d)

Show off

5.

The wish to have something is_

a)

Desire

b)

Demand

c)

Need

d)

Want

6.

Which element is essential for demand ?

a)

desire to consume

b)

given price

c)

willingness to spend

d)

All of the above

7.

Elasticity of demand is :

a)

qualitative statement

b)

quantitative statement

c)

both

d)

None of these

8.

The law of demand refers to the fact that, other things remaining the same, when the price of a good rises,

a)

the demand curve shirts rightward.

b)

the demand curve shifts leftward.

c)

there is a movement down along the demand curve to a larger quantity demanded.

d)

there is a movement up along the demand curve to a smaller quantity demanded.

9.

The problem of scarcity is relevant to

a)

a. third world countries.

b)

b. countries with low income.

c)

c. countries before practicing mass production.

d)

d. all countries and individuals.

10.

Consumption is the direct use of goods and services in satisfying human wants

a)

True

b)

False

11.

Which is NOT a feature of Utility

a)

Subjective

b)

Measurable

c)

Relative

d)

No moral or legal connotations

12.

The concept of marginal utility decreasing with the increase in amount consumed of a commodity is called

a)

Diminishing marginal returns

b)

Diminishing marginal utility

c)

Diminishing total utility

d)

Diminishing total returns

13.

What is the primary factor that influences consumer choice?

a)

Price

b)

Income

c)

Preferences

d)

All of the above

14.

Which of the following best describes the concept of opportunity cost?

a)

The cost of the next best alternative foregone

b)

The total cost of a decision

c)

The cost of production

d)

The cost of living

15.

In economics, what does the term 'market equilibrium' refer to?

a)

When supply equals demand

b)

When prices are at their highest

c)

When there is a surplus of goods

d)

When consumers have no preferences

16.

When the price of good A rises, people start to drink good B. In this case, what is good B considered?

a)

normal good

b)

substitute good

c)

luxury good

d)

complementary good

17.

What is the relationship between the Price and Quantity Demanded?

a)

Positive Relationship

b)

Inverse Relationship

c)

Direct Relationship

d)

Mixed Relationship

18.

The law of demand states; there is an INVERSE relationship between price and quantity demanded. Which of the following is not a true statement?

a)

Price goes down, qty demanded goes up.

b)

Price goes up, demand goes down.

c)

Price goes up qty demanded goes down.

d)

All answers are correct.

19.

The phrase "a change in demand" most directly implies a 

a)

shift in the demand curve

b)

change in quantity demanded of a good

c)

movement along the price curve

d)

movement along the curve

20.

Economics is a constant struggle between limited resources and____

a)

Unlimited needs and wants

b)

Limited needs and wants

c)

Unlimited Resources

d)

Scarcity