Quiz: Economics And Business

10 Questions | By Nksandoval | Updated: Mar 21, 2022 | Attempts: 1111

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In business today, one has to have adequate knowledge of economics and how it affects businesses and their activities. There are some factors within the economy to watch out for if you have a business such as interest rates, wages, and inflation. The quiz below is designed to help see how much you understand the connection. Give it a try!

Questions and Answers

1.

Which of the following would be a topic emphasized in a microeconomics class?
- A.
  
  How a nation's GDP is computed
- B.
  
  The reason's why the unemployment rate for the economy is rising or falling
- C.
  
  How market conditions determine the price of a specific product
- D.
  
  How the government can use fiscal and monetary policies to stabilize the economy
2.

For many years, Congressman Reggie Lader has called for more government regulation of business. "After all," the Congressman said recently, "business people are out to make a profit, not to create jobs or serve their customers. The government must pass more laws to require business to take the interests of consumers and workers into account." From these comments, it is clear that Congressman Lader:
- A.
  
  Agrees with the ideas of Thomas Malthus
- B.
  
  Does not accept the philosophy behind Adam Smith's invisible hand
- C.
  
  Is unaware of the fact that most businesses in the United States are actually owned by the government
- D.
  
  Does not realize that government regulation is already the main determinatinant of business decisions in capital economies
3.

When the supply curve and demand curve for a particular good are on a single graph, the point at which the two curves intersect identifies the:
- A.
  
  Total profit earned by producers
- B.
  
  Total amount of labor that will be employed in the market
- C.
  
  Amount of time it takes to bring together the buyers and sellers of the good
- D.
  
  Equilibrium price of the good
4.

In most large cities there are a large number of bakeries. These bakeries produce similar, but not identical, products. Some bakeries claim to have the best cheesecakes in town, while others brag about their cookies or specialty breads. The bakery market in a large city is an example of:
- A.
  
  Monopolistic competition
- B.
  
  Perfect competition
- C.
  
  An oligopoly
- D.
  
  A monopoly
5.

Which of the following people would tend to favor a socialist economy?
- A.
  
  John wants to live in a country with low marginal tax rates
- B.
  
  Robin wants to live in a country that encourages rapid economic growth
- C.
  
  Liz wants to live in a country with limited government regulation
- D.
  
  Fred prefers to live in a country that promotes social equality
6.

A command system is characterized by:
- A.
  
  Reliance on the forces of supply and demand to determine what is produced
- B.
  
  Reliance on the government to determine what is produced and who gets the output
- C.
  
  An extremely rapid rate of economic growth
- D.
  
  Freedom of choice and freedom of competition
7.

The total value of final goods and services produced within a nation's borders in a given year is known as the nation's:
- A.
  
  Aggregate production quota
- B.
  
  Aggregate domestic output
- C.
  
  Index of aggregate economic output
- D.
  
  Gross domestic product
8.

John complained to his buddy, Frank, that the prices of all the goods he and his family buy have increased a lot over the past year. Frank disagreed, saying that the prices of some goods have gone up a bit, but other prices have declined. Frank feels that the average price of consumer goods hasn't changed very much. In order to resolve their disagreement, John and Frank should look at recent figures for the:
- A.
  
  GDP
- B.
  
  CPI
- C.
  
  PPI
- D.
  
  MEW
9.

The Federal Reserve System operates:
- A.
  
  As a semi-private organization not under the direct control of the government
- B.
  
  Under the direct control of the executive branch of the government
- C.
  
  Under the direction of the Banking Oversight Committee of Congress
- D.
  
  As a special agency of the U.S. Treasury
10.

Senator Bud Jette is alarmed at the state of the economy. Unemployment is high and GDP is low. Senator Jette has called for Congress to take decisive action to increase its expenditures and cut takes in order to stimulate the economy. The actions called for by Senator Jette are examples of the government's use of:
- A.
  
  Monetary policy
- B.
  
  Fiscal policy
- C.
  
  Incomes policy
- D.
  
  Social investment policy