Basic Economics Quiz

7 Questions
Economics Quizzes & Trivia

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Questions and Answers
  • 1. 
    If the CPI in 2000 is 100 and the CPI in 2008 is 110, there has been:
    • A. 

      Slight inflation

    • B. 

      Slight deflation

    • C. 

      Extreme inflation

    • D. 

      Extreme deflation

    • E. 

      Stagflation

  • 2. 
    • A. 

      They are too large and would skew data

    • B. 

      They are negligible in size and scope

    • C. 

      They do not generate wealth

    • D. 

      They only measure a producer's impact on GDP

    • E. 

      They only measure the government's impact on GDP

  • 3. 
    What is the effect of a price ceiling in the long run?
    • A. 

      Equilibrium

    • B. 

      Shortages

    • C. 

      Surpluses

    • D. 

      Inflation

    • E. 

      Deflation

  • 4. 
    You are an artist. It always takes you an hour to produce one work of art. In other words, 1 work takes 1 hour, two works takes 2 hours, and so forth. Time is your only cost. This violates the principle of
    • A. 

      Demand

    • B. 

      Supply

    • C. 

      Ownership

    • D. 

      Equilibrium

    • E. 

      Diminishing marginal returns

  • 5. 
    Which of the following is not a component of demand?
    • A. 

      Consumer spending

    • B. 

      Investment

    • C. 

      Government spending

    • D. 

      Transfer payments

    • E. 

      Exports

  • 6. 
    Which of the following would cause a supply shift?
    • A. 

      A change in consumer tastes or preferences

    • B. 

      New technology

    • C. 

      Consumer taxes

    • D. 

      Employment figures

    • E. 

      None of the above

  • 7. 
    You own a farm that generates $100 K per year. You discover it is sitting on top of an oil field that could generate $500 K per year. Your economic cost of continuing to farm on the land is:
    • A. 

      $100 K

    • B. 

      $400 K

    • C. 

      $200 K

    • D. 

      $500 K

    • E. 

      $1000 K