Basic Economics Trivia Quiz Questions!

7 Questions | By Mals | Updated: Mar 22, 2022 | Attempts: 3740

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Basic Economics Trivia Quiz Questions! - Quiz

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.

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.

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