WorksheetsEconomics Quiz
Total questions: 52
Worksheet time: 31mins
A production possibility curve represents:
The maximum amount of goods and services an economy can produce
The different combinations of goods and services an economy can produce
The equilibrium point of an economy's production
The opportunity cost of producing one good over another
Points outside the production possibility curve represent:
Efficient use of resources
Inefficient use of resources
Unattainable combinations of goods
Equilibrium in the economy
Points inside the production possibility curve represent:
Efficient use of resources
Inefficient use of resources
Equilibrium in the economy
Unattainable combination of goods
If an economy is operating on its production possibility curve, it means that:
It is utilizing all available resources efficiently
It is experiencing no opportunity cost
It is in equilibrium
It is producing at the minimum possible level
The production possibility curve can shift outward if:
There is an increase in resources
There is a decrease in resources
There is a decrease in demand
There is a technological advancement
The total cost of producing a good or service is the sum of:
Fixed costs and variable costs
Opportunity costs and sunk costs
Accounting costs and economic costs
Average costs and marginal costs
The additional cost incurred by producing one more unit of output is known as:
Average costs
Total cost
Marginal cost
Fixed cost
Which of the following is an example of a fixed cost?
cost of raw materials
Cost of production
cost of renting and leasing a factory building
cost of electricity used in production
Variable costs are costs that:
Change with the level of production
Remain constant regardless of the level of production
Are incurred only in the long run
Are incurred only in the short run
The total fixed cost curve is
vertical.
horizontal.
downward sloping.
upward sloping.
If a firm sells 100 units for $5 per unit, what is the total revenue?
$50
$100
$500
$5
Revenue is the:
Cost incurred by a business
Profit earned by a business
Money earned from the sale of goods or services
Money spent on purchasing resources
Total revenue is calculated by multiplying:
Price per unit by the quantity sold
Total cost by the quantity sold
Average revenue by the quantity sold
Marginal revenue by the quantity sold
Marginal revenue is the:
Total revenue earned from selling one more unit of a good
Average revenue earned from selling one more unit of a good
Additional revenue earned from selling one more unit of a good
Total cost incurred in producing one more unit of a good
The law of diminishing returns follows three stages, except one;
Increasing returns
Constant returns
Decreasing returns
Sliding returns
_____________________ refers to the total quantity of goods produced at a particular time as a result of the use of all the factors of production.
Average products
Total products
Marginal product
Fixed product
The TP curve remains at the maximum point when MP is _____________.
Zero
Negative
Positive
Constant
An economic system is:
The way businesses are organized
The way goods and services are produced and distributed in a society
The way prices are determined in the market
The way governments regulate the economy
Which of the following is NOT an economic system?
Market economy
Command economy
Traditional economy
Democratic economy
What is the main characteristic of a market economy?
Centralized planning by the government
Private ownership of resources
Equal distribution of wealth
Collective ownership of means of production
In a command economy, economic decisions are primarily made by:
Private businesses and individuals
Market forces of supply and demand
Government authorities or central planning agencies
Traditional customs and beliefs
In a traditional economy, economic decisions are primarily based on:
Consumer preferences and choices
Market forces of supply and demand
Government regulations and policies
Traditional customs and beliefs
Which economic system allows for the greatest degree of individual freedom and private ownership of resources?
Market economy
Command economy
Traditional economy
Mixed economy
Which economic system is characterized by central planning and government control of resources and production?
Market economy
Command economy
Traditional economy
Mixed economy
In a command economy, the government typically owns and controls:
All businesses and resources
Some businesses and resources
No businesses and resources
Shares of businesses and resources
Which economic system is most likely to have limited government intervention in the economy?
Market economy
Command economy
Traditional economy
Mixed economy
In a command economy, who makes decisions about resource allocation?
Individuals and businesses
Central planning authority or government
Market forces
NGOs and non-profit organizations
The labour market refers to:
The market for goods and services
The market for labour and employment
The market for capital and investments
The market for natural resources
In the labour market, a shortage of labour occurs when:
The supply of labour exceeds the demand
The demand for labour exceeds supply
There is no imbalance between supply and demand
Government intervenes in wage-setting
Labor mobility refers to:
The ability of workers to acquire new skills for career advancement.
The ability of workers to move between jobs or geographical locations.
The ability of workers to remain in a single job for their entire career.
The ability of workers to negotiate their salaries.
The labour force working age group in Nigeria are between the age of __________________________.
17 - 61 years old
15 - 65 years old
18 - 60 years old
18 - 61 years old
In the context of labour markets, the demand for labour refers to:
The number of workers willing to work at a given wage
The quantity of labour that employers are willing and able to hire at a given wage
The total number of workers in the economy
The wage rate that workers are willing to accept
Which of the following factors affects the demand for labour?
Worker preferences and decisions
The wage rate
The number of workers available in the market
The level of government regulation
The equilibrium in the labour market occurs when:
The wage rate is set by the government
There is a shortage of workers
The quantity of labour supplied equals the quantity of labour demanded
The quantity of labour demanded exceeds the quantity of labour supplied
If the demand for labour increases while the supply of labour remains constant, what will happen to the equilibrium wage rate?
It will increase
It will decrease
It will remain unchanged
It is uncertain
If there is a surplus of labour in the market, what will likely happen to the wage rate?
It will increase
It will decrease
It will remain unchanged
It is uncertain
In a perfectly competitive market, there are:
Many buyers and many sellers
Many buyers and few sellers
Few buyers and many sellers
Few buyers and few sellers
In a perfectly competitive market, the products sold by different firms are:
Homogeneous
Differentiated
Unique
Scarce
In a perfectly competitive market, the entry and exit of firms is:
Restricted
Regulated
Easy and free
Controlled by the government
In a perfectly competitive market, each firm is a:
Price taker
Price maker
Price setter
Price negotiator
Imperfect markets are characterized by:
Many buyers and many sellers
Many buyers and few sellers
Few buyers and many sellers
Few buyers and few sellers
In an imperfect market, the entry and exit of firms is:
Restricted
Regulated
Easy and free
Controlled by the government
In an imperfect market, the price is determined by:
Individual firms
Individual buyers
Market demand and supply
Government regulations
The Nigerian oil and gas industry is mainly located in which region?
South-South
North-West
South-East
North-Central
Which industry is focused on the extraction of solid minerals in Nigeria?
Mining
Agriculture
Construction
Telecommunications
The location of industries is influenced by factors such as:
Climate and weather conditions
Availability of natural resources
Cultural preferences
Political affiliations
The construction industry in Nigeria is relatively evenly distributed across the country due to:
a) Government regulations
b) Infrastructure development needs
c) Availability of skilled labour
d) Foreign investments
Two factors which can improve the efficiency of labour are
a) population size and age of retirement.
b) school leaving age and number of disabled workers.
c) work environment and health status of workers.
d) school leaving age and number of part-time workers.
7. The type of unemployment found among workers who leave their jobs in search of other jobs is termed
a) seasonal unemployment
b) structural unemployment
c) frictional unemployment
d) cyclical unemployment
7. When job vacancies are publicized, the government is mainly trying to solve the problem of
a) residual unemployment.
b) frictional unemployment.
c) technological unemployment.
d) cyclical unemployment.
Analyse an economist's view of cost and an accountant's view of cost
Distinguish between a capitalist economy and a socialist economy
