Basic Economics Trivia Quiz Questions!
(166).jpg "Basic Economics Trivia Quiz Questions!")
It’s time to get down to basics as we take a look at one of the more complex topics when it comes to business and finance; economics! It sounds easy on paper – it’s just the study of production, distribution, and consumption of goods and services – but it involves a lot of math and analysis you might not understand when starting out. What can you understand, however? Let’s take a look.
- 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.Why are transfer payments not a component of GDP?
- 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
Questions: 10 | Attempts: 18339 | Last updated: Jun 15, 2020
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