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Economics Quiz

Total questions: 20

Worksheet time: 7mins

Name
Class
Date
1.

Which of these factors directly affects the inflation rate?

a)

Wage growth

b)

Tax cuts

c)

An increase in the money supply

d)

The amount of exported goods

2.

Why does "commodity money " have value?

a)

Because they can only be used for exchange

b)

They have intrinsic value

c)

They are regulated by the government

d)

Their production is expensive

3.

Which example demonstrates the trade-off between efficiency and equality?

a)

Introducing a progressive tax

b)

Increasing the minimum wage

c)

Building new factories

d)

Simplifying customs procedures

4.

What happens if the government sets a maximum price below the equilibrium price?

a)

Market equilibrium

b)

Shortage

c)

Surplus

d)

Decreased demand

5.

Which commodity was used as commodity money in the past?

a)

Watches

b)

Salt

c)

Oil

d)

Stones

6.

What problem does the introduction of money solve compared to a barter system?

a)

The demand problem

b)

The double coincidence of wants problem

c)

The competition problem

d)

The value problem

7.

Why are goods with low price elasticity of demand advantageous for taxation?

a)

Because they are accessible to everyone

b)

Because their demand does not change much with a price change

c)

Because they are luxury items

d)

Because their production is cheaper

8.

Which of these factors shifts the supply curve?

a)

Changes in preferences

b)

Technological change

c)

Increase in income

d)

Decrease in prices of substitute goods

9.

What happens to the market price if demand exceeds supply?

a)

The price falls

b)

The price rises

c)

The price remains stable

d)

Sellers reduce product quality

10.

Which of these characteristics does not apply to a command economy?

a)

High level of equality

b)

Competition between producers

c)

Production planning

d)

Government distribution of resources

11.

What happens if all countries stop international trade?

a)

The economy of countries will improve

b)

Production possibilities will increase

c)

The efficiency of resource use will decrease

d)

Everything will stay the same

12.

What characterizes a perfectly competitive market?

a)

The presence of several large sellers

b)

The absence of one seller affecting the price

c)

Market monopoly

d)

A limited number of buyers

13.

What is the role of the "invisible hand" in a market economy?

a)

In managing production

b)

In self-regulating the market through competition

c)

In controlling prices by the government

d)

In resource allocation

14.

What characterizes a system of commodity money?

a)

They are only regulated by the market

b)

They can be used for other purposes besides exchange

c)

They are created based on government reserves

d)

Their value depends on exchange rates

15.

What effect does technological progress have on the supply curve?

a)

Shifts it to the left

b)

Shifts it to the right

c)

Does not change it

d)

Changes the slope

16.

What problem does the introduction of a minimum wage solve?

a)

The problem of income equality

b)

The problem of inflation

c)

The problem of competition

d)

The problem of employment

17.

The price of coffee increased from $5 to $6, and the quantity demanded decreased from 100 to 80 cups per day. What is the price elasticity of demand?

a)

1.25

b)

0.8

c)

1.5

d)

0.6

18.

A firm’s total revenue increases when the price is decreased. This suggests that demand for the product is...

a)

Elastic

b)

Inelastic

c)

Unit elastic

d)

Perfectly inelastic

19.

A consumer buys 5 books at $10 each, and 10 books when the price drops to $8. What is the percentage change in quantity demanded?

a)

25%

b)

50%

c)

10%

d)

100%

20.

What happens to the supply curve when there is an increase in the price of a key input for production?

a)
  • The supply curve shifts to the right

b)

The supply curve shifts to the left

c)

The supply curve remains unchanged

d)

The quantity supplied increases