Test Your Knowledge About Economics! Quiz

9 Questions | By Pooh3620 | Last updated: Mar 20, 2022 | Total Attempts: 1577

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Economics is a study that helps us to identify how to maximize the output we get from our scarce resources and meet the needs of our clients or our own needs. Do you wish to test your knowledge about economics? Take up the quiz below and get to find out for sure by choosing the correct choice to the questions. All the best!

Questions and Answers

1.

The value of the best alternative forgone when an activity is chosen can best be defined as
- A.
  
  Sunk Cost
- B.
  
  Oppurtunity Cost
- C.
  
  Capitalism
- D.
  
  Advantage
2.

Absoulute Advantage is:
- A.
  
  The ability to make something using fewer resources than other producers
- B.
  
  Is subjective
- C.
  
  Requires Time
- D.
  
  Requires Information
3.

Sunk cost is a cost that has already been what?
- A.
  
  Incurred and cannot be recovered
- B.
  
  Affecting economic decisions
- C.
  
  Varying with circumstances
- D.
  
  None of the Above
4.

The law of Comparative Advantage is defined as
- A.
  
  Cost that has been incurred
- B.
  
  Using fewer resources than other producers
- C.
  
  Advantatges over other producers
- D.
  
  The individual firm, religon,or country with the lowest oppurtunity cost if producing a particular good should speacialize in that good
5.

Using fewer resources then other producers is:
- A.
  
  Absolute Advantage
- B.
  
  Comparative Advantage
- C.
  
  Sunk Cost
- D.
  
  None of the Above
6.

Comparative Advantage is:
- A.
  
  Cost that has been incurred
- B.
  
  Oppurtunity cost of a company
- C.
  
  The ability to make something at a lower oppurtunity cost then other producers
- D.
  
  Ability to use fewer resources
7.

The direct exchange of one good for another without using money is a
- A.
  
  Barter
- B.
  
  Exchange
- C.
  
  Trade
- D.
  
  None of the above
8.

Economic growth does what to the economy
- A.
  
  Increases
- B.
  
  Decreases
- C.
  
  Nothing
- D.
  
  None of the above
9.

Private Propety rights allows owners to do what:
- A.
  
  Rent
- B.
  
  Sell
- C.
  
  Use
- D.
  
  All of the Above