Basic Economics Quiz For Beginners!

8 Questions | Total Attempts: 1079

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Economics Quizzes & Trivia

Are you a beginner when it comes to economics? Have you just covered chapters one to five in ECO 401 class? If your answer was a yes, then the quiz below is designed to test out just how much information you have when it comes to the said chapters. Take it up and remember to share your results in the comment section.


Questions and Answers
  • 1. 
    Which is not correct for product Market
    • A. 

      Goods purchased by the household sector

    • B. 

      Goods purchased by government and foreign sectors

    • C. 

      Exchange of raw materials

    • D. 

      Exchange consumer goods

  • 2. 
    Which is not correct for Factor market maket.
    • A. 

      Termed as termed resource market

    • B. 

      The value of the services exchanged through factor markets each year is measured as national income.

    • C. 

      Buying and selling of the worker and their services take place through factor markets

    • D. 

      The labor services of workers are exchanged through factor markets

  • 3. 
    A situation in which no firm or consumer is big enough to affect the market price.
    • A. 

      Perfect competition

    • B. 

      Fair competition

    • C. 

      Monoply

    • D. 

      Market efficiency

  • 4. 
    _______  is a signaling and rationing device which prompts consumers and producers toadjust their demand and supply
    • A. 

      Trade Balance

    • B. 

      Price Mechanism:

    • C. 

      Assumption

    • D. 

      Market dynamics

  • 5. 
    An increase in the price of_________  results in an increase in the quantity demanded.
    • A. 

      Normal goods

    • B. 

      Inferior goods

    • C. 

      Giffen goods

    • D. 

      Substitution goods

  • 6. 
    When price of any good increases, consumer’s real income falls and itspurchasing power also decreases. This is __________
    • A. 

      Income effect

    • B. 

      Price effect:

    • C. 

      Substitution effect

  • 7. 
    When the demand for good X equals the supply of good X, the market for good X is said to be in equilibrium
    • A. 

      True

    • B. 

      False

  • 8. 
    Equilibrium can Shift if ________ (mark all correct option)
    • A. 

      Demand Curve Shifts.

    • B. 

      Supply Curve Shifts

    • C. 

      Quantity demand equals Quantity Supply

    • D. 

      Both Demand and Supply curves shift