Can You ACE This Economics Exam? Trivia Quiz

26 Questions | Total Attempts: 80

SettingsSettingsSettings
Please wait...
Can You ACE This Economics Exam? Trivia Quiz

Think you are an expert in Economics? Can you ace this economics exam? This quiz is an excellent tool to prove your knowledge and use for practice. Economics is the study or practice of how people interact with value. The manufacture, circulation, and utilization of goods and services are heavily influenced by economics and vice versa. It also measures the way that wealth affects our society, and it can even predict future wealth. This quiz can help you pass the economics exam. You can do it.


Questions and Answers
  • 1. 
    Which of the following statements is true about scarcity?
    • A. 

      Scarcity is not a problem for the wealthy.

    • B. 

      Scarcity refers to the situation in which unlimited wants exceed limited resources.

    • C. 

      Scarcity is only a problem when a country has too large a population.

    • D. 

      Scarcity arises when there is a wide disparity in income distribution.

  • 2. 
    By definition, economics is the study of?
    • A. 

      The choices people make to attin their goals, given their scarce resources.

    • B. 

      Supply and demand.

    • C. 

      How to make money in the stock market.

    • D. 

      How to make money in a market economy.

  • 3. 
    Which of the above statements demonstrates that economic agents respond to incentives? A.) Car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area. B.) Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment. C.) Firms produce more of a particular DVD when its selling price rises.
    • A. 

      A only

    • B. 

      B only

    • C. 

      C only

    • D. 

      A and b

    • E. 

      A,b, and c

  • 4. 
    A grocery store sells a bag of potatoes at a fixed price of $2.30.  Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?
    • A. 

      Pure profit

    • B. 

      Gross earnings

    • C. 

      Net benefit

    • D. 

      Marginal costs

    • E. 

      Marginal revenue

  • 5. 
    The three fundamental questions that any economy must address are?
    • A. 

      What will be the prices of goods and services; how will these goods and services be produced; and who will receive them?

    • B. 

      What goods and services to produce; how will these goods and services be produced; and who receives them?

    • C. 

      How much will be saved; what will be produced; and how can these goods and services be fairly distributed?

    • D. 

      Who gets jobs; what wages do workers earn; and who owns what property?

  • 6. 
    Consider the following economic agents: A.) The government B.) Consumers C.) Producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy?
    • A. 

      Consumers

    • B. 

      Consumers and producers

    • C. 

      The government, consumers, and producers

    • D. 

      The government

    • E. 

      Producers

  • 7. 
    How are the fundamental economic questions answered in a market economy?
    • A. 

      The government alone decided the answers.

    • B. 

      Individuals, firms, and the government interact in markets to decide the answers to these questions.

    • C. 

      Large corporations alone decide the answers.

    • D. 

      Households and firms interact in markets to decide the answers to these questions.

  • 8. 
    Voluntary exchange increases economic efficiency
    • A. 

      Because it allows wealthy individuals to act altruistically and give to the poor.

    • B. 

      Because voluntary exchange only takes place with government permission.

    • C. 

      Because neither the buyer nor the seller would agree to trade unless they both benefit.

    • D. 

      Because it is free and consequently does not cost anything.

  • 9. 
    Which of the following statements about positive economic analysis is false?
    • A. 

      Unlike normative economic analysis, positive economic analysis can be tested.

    • B. 

      Positive analysis uses an economic model to estimate the costs and benefits of different course of actions.

    • C. 

      There is much more disagreement among economists over positive economic analysis than over normative economic analysis.

    • D. 

      There is much more disagreement among economists over normative economic analysis than over positve economic analysis.

  • 10. 
    The economic analysis of minimum wage involves both normative and positive analysis.  Consider the following consequences of a minimum wage: A.) The minimum wage law causes unemployment. B.) A minimum wage law benefits some groups and hurts others. C.) In some cities such as San Francisco and New York, it would be impossible for low-skilled workers to live in the city without minimum wage laws. D.) The gains to winners of a minimum wage law should be valued more highly than the losses to losers because the latter primarily comprises businesses. Which of the consequences above are positive statements and which are normative statements?
    • A. 

      A, b, and C are positive statements, and D is a normative statement.

    • B. 

      Only a is a positive statement,b, ca nd D are a normative statement.

    • C. 

      A and c are positive statements, b and d are a normative statements.

    • D. 

      A and b are positive statements, c and d are a normative statements.

  • 11. 
    Technology is defined as
    • A. 

      New innovations and creations.

    • B. 

      The processes used to produce goods and services.

    • C. 

      The processes of recycling products.

    • D. 

      The process of developing and revising models.

  • 12. 
    The principle of opportunity cost is that
    • A. 

      The cost of production varies depending on the opportunity for technological application.

    • B. 

      The economic cost of using a factor of production is the alternative use of that factor that is given up.

    • C. 

      In a market economy, taking advantage of profitable opportunities involves some money cost.

    • D. 

      Taking advantage of investment opportunities involves costs.

  • 13. 
    The production possibilities frontier model shows that
    • A. 

      Economic growth can only be achieved by free-market economies.

    • B. 

      A market economy is more efficient in producing goods and services than is a centrally planned economy.

    • C. 

      If consumers decide to buy more of a product its price will increase.

    • D. 

      If all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.

  • 14. 
    Increasing marginal opportunity cost implies that
    • A. 

      The more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.

    • B. 

      The law of scarcity.

    • C. 

      The more resources already devoted to any activity, the benefits from allocating yet more resources to that activity decreases by progressively larger amounts.

    • D. 

      That rising opportunity cost makes it inefficient to produce beyond a certain quantity.

  • 15. 
    An outward shift of a nation's production possibilities frontier represents?
    • A. 

      A situation in which a country produces more of one good and less of another.

    • B. 

      Economic growth.

    • C. 

      An impossible situation.

    • D. 

      Rising prices of the two goods on the production possibilites frontier model.

  • 16. 
    The great depression of the 1930s with a large number of workers and factories unemployed would be represented in a production possibilities frontier graph by
    • A. 

      A point on the frontier.

    • B. 

      A point inside the frontier.

    • C. 

      A point outside the frontier.

    • D. 

      An intercept on eitehr the vertical or the horizontal axis.

  • 17. 
    If the lawyer in town is also the best at operating a word processor, then according to economic reasoning, this person should
    • A. 

      Should pursue the activity she enjoys more.

    • B. 

      Specialize in being a work processor becuase it is more capital-intensive.

    • C. 

      Specialize in being a lawyer because its oppurtunity cost is lower.

    • D. 

      Split her time evenly between being a lawyer and a word processor.

  • 18. 
    What is the difference between an "increase in demand" and an "increase in quantity demanded"?
    • A. 

      There is no difference between the two terms; they both refer to a movement downward along a given demand curve.

    • B. 

      An "increase in demand" is represented by a movement along a given demand curve, while an "increase in quantity demanded" is represented by a rightward shift of the demand curve.

    • C. 

      There is no difference between the two terms; they both refer to a shift of the demand curve.

    • D. 

      An "increase in demand" is represented by a rightward shift of teh demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve.

  • 19. 
    The phrase "demanded has increased" means that
    • A. 

      A demand curve has shifted to the left.

    • B. 

      A demand curve has shifted to the right.

    • C. 

      There has been a downward movement along a demand curve.

    • D. 

      There has been an upward movement along a demand curve.

  • 20. 
    The income effect of a price change refers to the impact of a change in
    • A. 

      Demand when income changes.

    • B. 

      The quantity demanded when income changes.

    • C. 

      Income on the price of a good.

    • D. 

      The price of a good on a consumer's purchasing power.

  • 21. 
    Several studies have shown promising links between green tea consumption and cancer prevention. How does this affect the market for green tea?
    • A. 

      The green tea demand curve shifts to the left because this new information will increase the price of green tea.

    • B. 

      The green tea supply curve shifts to teh left becuase this new information will increase the price of green tea.

    • C. 

      The green tea demand curve shifts to the right because of a change in tastes in favor of green tea.

    • D. 

      The green tea supply curve shifts to the right because of a change in tastes in favor of green tea.

  • 22. 
    Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit.  This month, the company supplied the same quantity of binders at $4 per unit.  Based on this evidence, Tecumseh has experienced...
    • A. 

      An increase in supply.

    • B. 

      An increase in the quantity supplied.

    • C. 

      A decrease in the quantity supplied

    • D. 

      A decrease in supply.

  • 23. 
    What is the difference between an "increase in supply" and an "increase in quantity supplied"?
    • A. 

      There is no difference between the two terms; they both refer to a shift of the supply curve.

    • B. 

      An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.

    • C. 

      An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased.

    • D. 

      There is no difference between the two terms; they both refer to a movement along a given supply curve.

  • 24. 
    In october 2005, the U.S. Fish and Wildfire Service banned the importation of belgua caviar, the most prized of caviars, from the Caspian Sea.  What happened in the market for caviar in the U.S.?
    • A. 

      The supply curve shifted to the left.

    • B. 

      The supply curve shifted to the right.

    • C. 

      The demand curve shifted to the left.

    • D. 

      The demand curve shifted to the right.

  • 25. 
    If the quantity demanded a product exceeds the quantity supplied, the market price will rise until?
    • A. 

      Only wealthy consumers will be able to afford the product.

    • B. 

      The quantity demanded equals teh quantity supplied. The product will then no longer be scarce.

    • C. 

      Quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.

    • D. 

      Quantity demanded equals quantity supplied. The equilibrium price will then be greater than the market price.

Back to Top Back to top