Economics Hardest Exam Quiz: Trivia

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By CJACOBSEN
C
CJACOBSEN
Community Contributor
Quizzes Created: 1 | Total Attempts: 1,170
| Attempts: 1,170
SettingsSettings
Please wait...
  • 1/70 Questions

    What is Scarcity?

    • Giving something up to have something else
    • Extra cost of producing one additional unit of production
    • The condition that results from society not having enough resources to produce all the things people would like to have
    • A rise in the general level of prices occurs, workers need more money to pay for good clothing and shelter
Please wait...
About This Quiz


Exams are the most cricual part of our learning phase, expecially when it is for subject like Economics. Some would agree that economics is challenging at best. If you don’t think so, this quiz can change your mind. For this quiz, you will be required to know the three main economics questions: the definition of capital, what it means to be an entrepreneur and the opportunity cost. Dive in and take a chance with this quiz; you will learn about economics.

Economics Hardest Exam Quiz: Trivia - Quiz

Quiz Preview

  • 2. 

    What is Economics?

    • The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources

    • Employment, gross domestic product, inflation, economic growth, and the distribution of income

    • Deals with behavior and decision making by small units, such as individuals and firms

    • A rise in the general level of prices occurs, workers need more money to pay for good clothing and shelter

    Correct Answer
    A. The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources
    Explanation
    Economics is the study of how individuals and societies make choices in the face of limited resources to satisfy their unlimited wants. It involves analyzing various economic indicators such as employment, gross domestic product, inflation, economic growth, and income distribution. Additionally, economics also focuses on understanding the behavior and decision-making processes of individuals and firms. The given answer accurately captures the essence of economics by highlighting the concept of trying to satisfy unlimited wants with scarce resources.

    Rate this question:

  • 3. 

    The main purpose of antitrust laws is to

    • Ensure fair competition.

    • Reform interstate trade.

    • Increase exports.

    • Restrict foreign investment.

    Correct Answer
    A. Ensure fair competition.
    Explanation
    Antitrust laws are designed to prevent monopolies and promote fair competition in the market. These laws aim to protect consumers by ensuring that no single company or group of companies can dominate a particular industry, thereby promoting innovation, lower prices, and better quality products or services. By preventing anti-competitive practices such as price-fixing, collusion, and unfair mergers or acquisitions, antitrust laws help maintain a level playing field for all businesses, encouraging healthy competition and benefiting both consumers and the economy as a whole.

    Rate this question:

  • 4. 

    Actions or activites that one person performs for another is ________.

    • Needs

    • Wants

    • Goods

    • Services

    Correct Answer
    A. Services
    Explanation
    Services refer to actions or activities that one person performs for another. This can include a wide range of activities such as providing professional advice, performing tasks, or offering assistance. Unlike goods, which are tangible and can be physically possessed, services are intangible and are typically consumed at the time they are provided. Therefore, the correct answer for this question is "services".

    Rate this question:

  • 5. 

    What is microeconomics?

    • The area of economics that deals with the behavior and decision making by small units

    • The area of economics that deals with the behavior and decision of the whole world

    • The branch of economics that deals with the economy as a whole

    • The branch of economics that deals with the monetary value

    Correct Answer
    A. The area of economics that deals with the behavior and decision making by small units
    Explanation
    Microeconomics is the branch of economics that focuses on the behavior and decision making of individual economic units such as households, firms, and industries. It examines how these units make choices regarding the allocation of scarce resources and the determination of prices in specific markets. Microeconomics analyzes factors such as supply and demand, production and consumption, market structures, and the effects of government policies on individual economic agents. By studying the behavior of small units, microeconomics provides insights into the functioning of the overall economy.

    Rate this question:

  • 6. 

    Something like air, food or shelter that is necessary for survival is considered a ________.

    • Need

    • Want

    • Goods

    • Services

    Correct Answer
    A. Need
    Explanation
    A need refers to something that is essential for survival or basic well-being. It is something that is necessary for an individual to live a healthy and fulfilling life. In this context, air, food, and shelter are all examples of needs as they are fundamental requirements for human survival.

    Rate this question:

  • 7. 

    An item that we desire but that is not essential for survival is a __________.

    • Need

    • Service

    • Want

    • Good

    Correct Answer
    A. Want
    Explanation
    A want refers to something that we desire or wish to have, but it is not necessary for our survival or basic needs. It is a non-essential item or a luxury that we may crave or aspire to possess. Unlike needs, wants are not essential for our well-being or survival, but they often contribute to our overall satisfaction and enjoyment in life.

    Rate this question:

  • 8. 

    What are the many payments for the factors of productions called?

    • Land - wages, labor - interest, capital - rent, entrepreneurs - profit

    • Land - rent, labor - wages, capital - interest, entrepreneurs - profit

    • Land - profit, labor - rent, capital - wages, entrepreneurs - interest

    • Land - interest, labor - rent, capital - profit, entrepreneurs - wages

    Correct Answer
    A. Land - rent, labor - wages, capital - interest, entrepreneurs - profit
    Explanation
    The correct answer is Land - rent, labor - wages, capital - interest, entrepreneurs - profit. This answer correctly identifies the payments for each factor of production. Land receives rent, labor receives wages, capital receives interest, and entrepreneurs receive profit.

    Rate this question:

  • 9. 

    What is the FOMC?

    • Federal Opinion Money Committee

    • Federal Open Minded Committee

    • Federal Open Market Committee

    • Federal Option Money Committee

    Correct Answer
    A. Federal Open Market Committee
    Explanation
    The correct answer is the Federal Open Market Committee (FOMC). This committee is responsible for making monetary policy decisions in the United States. It consists of members from the Federal Reserve Board and regional Federal Reserve Bank presidents. The FOMC meets regularly to discuss economic conditions and determine the appropriate course of action to achieve the Federal Reserve's dual mandate of price stability and maximum employment. They have the power to influence interest rates and the money supply through various tools such as open market operations.

    Rate this question:

  • 10. 

    Define merger?

    • A combination of two or more buisnesses to form a single firm

    • A combination of three or more buisnesses to form a single firm

    • A combination of four of more buisnesses to form a single firm

    Correct Answer
    A. A combination of two or more buisnesses to form a single firm
    Explanation
    A merger is the combination of two or more businesses to form a single firm. This allows the companies involved to pool their resources, expertise, and market share, leading to potential synergies and increased efficiency. By merging, the companies can benefit from economies of scale, expand their customer base, and gain a competitive advantage in the market. This strategic move often aims to increase market share, reduce costs, and enhance profitability for the newly formed entity.

    Rate this question:

  • 11. 

    What are the four factors of production?

    • Land, capital, money, entrepreneurs

    • Land, capital, labor, entrepreneurs

    • Capital, money, supply, demand

    • Labor, capital, supply, demand

    Correct Answer
    A. Land, capital, labor, entrepreneurs
    Explanation
    The correct answer is land, capital, labor, entrepreneurs. These four factors of production are essential in the creation of goods and services. Land refers to natural resources such as land itself, water, and minerals. Capital represents man-made resources like machinery and equipment. Labor involves the physical and mental effort put in by workers. Entrepreneurs are individuals who take risks and bring together the other factors of production to create and manage a business.

    Rate this question:

  • 12. 

    What is the SEC?

    • Securities and Exchange Commission

    • Safety and Exemption Committee

    • Security of Environment Commission

    • Safety of Education Control

    Correct Answer
    A. Securities and Exchange Commission
    Explanation
    The SEC, or Securities and Exchange Commission, is a regulatory agency in the United States that is responsible for enforcing federal securities laws. It oversees the securities industry, including stock exchanges, brokerage firms, and investment advisors, to ensure fair and transparent markets. The SEC's main goal is to protect investors from fraudulent activities and promote capital formation. It requires companies to disclose relevant financial information to the public, thereby providing investors with the necessary information to make informed investment decisions. The SEC also has the authority to investigate and prosecute individuals or companies that violate securities laws.

    Rate this question:

  • 13. 

    Physical objects such as food and clothes are considered _________.

    • Economics

    • Goods

    • Services

    • Want

    Correct Answer
    A. Goods
    Explanation
    Physical objects such as food and clothes are considered goods. Goods are tangible items that are produced and consumed to satisfy human wants and needs. In economics, goods are classified as either durable goods, which are long-lasting and can be used repeatedly, or non-durable goods, which are consumed in a single use or a few uses. Food and clothes fall under the category of non-durable goods as they are typically consumed or worn out after a certain period of time.

    Rate this question:

  • 14. 

    What are the three basic economic questions?

    • What, where, whom

    • What, how, whom

    • How, whom, when

    • What, why, whom

    Correct Answer
    A. What, how, whom
    Explanation
    The three basic economic questions are what to produce, how to produce, and for whom to produce. "What" refers to the goods and services that should be produced to satisfy the needs and wants of society. "How" relates to the methods and resources used in the production process. "Whom" pertains to the distribution of the produced goods and services among individuals and groups in society.

    Rate this question:

  • 15. 

    Economists keep track of inflation by calculating the

    • Lagging indicators.

    • Net domestic product.

    • Reserve requirements.

    • Consumer price index.

    Correct Answer
    A. Consumer price index.
    Explanation
    Economists keep track of inflation by calculating the consumer price index. The consumer price index is a measure that tracks the average price level of a basket of goods and services consumed by households. It reflects changes in the cost of living and is widely used to monitor inflationary trends. By calculating the consumer price index, economists can assess the rate at which prices are rising or falling and make informed decisions regarding monetary policy and economic stability.

    Rate this question:

  • 16. 

    What is PPF?

    • Possible Production Frontier

    • Production Possibilities Frontier

    • Probable Projection Frontier

    • Projected Possibilities Frontier

    Correct Answer
    A. Production Possibilities Frontier
    Explanation
    The correct answer is Production Possibilities Frontier. PPF refers to the graphical representation of the different combinations of two goods or services that can be produced using limited resources and technology. It shows the maximum output that can be achieved given the available resources and the trade-offs between producing different goods. The PPF curve illustrates the concept of scarcity and opportunity cost in economics.

    Rate this question:

  • 17. 

    Any human-made resource that is used to produce other goods and services is _______.

    • Capital

    • Shortage

    • Land

    • Scarcity

    Correct Answer
    A. Capital
    Explanation
    Capital refers to any human-made resource that is used to produce other goods and services. It includes tools, machinery, equipment, buildings, and infrastructure. Capital is essential for the production process as it helps in increasing productivity and efficiency. It is different from land, which refers to natural resources, and scarcity, which is a condition of limited resources. Capital is crucial for economic growth and development.

    Rate this question:

  • 18. 

    What is macroeconomics?

    • The branch of economics that deals with the monetary value

    • The area of economics that deals with behavior and decision making by small units

    • The branch of economics that deals with the economy as a whole

    • The are of economics that deals with the behavior and decision making of your personal life

    Correct Answer
    A. The branch of economics that deals with the economy as a whole
    Explanation
    Macroeconomics is the branch of economics that focuses on studying the economy as a whole. It examines aggregate variables such as national income, unemployment rates, inflation, and economic growth to understand and analyze the overall performance and behavior of an economy. Macroeconomics seeks to understand the factors that influence the overall level of economic activity, including government policies, international trade, and monetary and fiscal policies. By studying macroeconomics, economists can gain insights into how different sectors of the economy interact and how changes in one area can impact the overall economy.

    Rate this question:

  • 19. 

    What is a non-durable good?

    • Any good that when used on a regular basis lasts less than ten years

    • Any good that when not used lasts less than three years

    • Any good that when used on a regular basis lasts less than three years

    • Any good that when not used last less than ten years

    Correct Answer
    A. Any good that when used on a regular basis lasts less than three years
    Explanation
    A non-durable good refers to any product that has a short lifespan and does not last for more than three years when used regularly. Unlike durable goods, which are designed to last for an extended period, non-durable goods are typically consumed or worn out quickly. This answer accurately defines non-durable goods by highlighting their limited durability when used on a regular basis.

    Rate this question:

  • 20. 

    What is the law of supply?

    • The principle that suppliers will normally offer less for sale at high prices and more at lower prices

    • The principle that suppliers will normally offer more for sale at high prices and less at lower prices

    Correct Answer
    A. The principle that suppliers will normally offer more for sale at high prices and less at lower prices
    Explanation
    The law of supply states that suppliers will generally offer more for sale at higher prices and less at lower prices. This is because as prices increase, suppliers are incentivized to produce and sell more goods or services in order to maximize their profits. On the other hand, when prices are lower, suppliers may choose to reduce their production or withhold their goods in order to maintain profitability. This relationship between price and quantity supplied is a fundamental concept in economics.

    Rate this question:

  • 21. 

    In perfect competition,

    • Large sellers can easily control prices.

    • The workings of supply and demand control the market.

    • Single sellers can dominate the market.

    • Buyers can manipulate price and supply.

    Correct Answer
    A. The workings of supply and demand control the market.
    Explanation
    In perfect competition, the market is characterized by a large number of buyers and sellers, all selling identical products. In such a market, no single seller or buyer has the power to control prices. Instead, prices are determined by the forces of supply and demand. As buyers and sellers interact in the market, the equilibrium price is established where the quantity demanded equals the quantity supplied. Therefore, the correct answer is that the workings of supply and demand control the market in perfect competition.

    Rate this question:

  • 22. 

    What is opportunity cost?

    • The cost assosiated with any opportunity

    • Giving the cost in order to have the opportunity

    • The cost required in order to succeed

    • Giving something up to have something else

    Correct Answer
    A. Giving something up to have something else
    Explanation
    Opportunity cost refers to the concept of giving up or sacrificing one option in order to pursue or obtain another option. It is the value of the next best alternative that is foregone when a choice is made. In other words, when making a decision, the opportunity cost is what you give up or lose by choosing one option over another. It involves weighing the benefits and drawbacks of different choices and considering the potential benefits that could have been obtained from the alternative option.

    Rate this question:

  • 23. 

    What is a price floor?

    • Highest legal price that can be paid for a good or service

    • Lowest legal price that can be paid for a good or service

    • Highest legal price that can be charged in order to maintain agreement

    • Lowest legal price that can be charged in order to maintain agreement

    Correct Answer
    A. Lowest legal price that can be paid for a good or service
    Explanation
    A price floor is the lowest legal price that can be paid for a good or service. It is a government-imposed regulation that sets a minimum price that sellers can charge for a product or service. This is done to ensure that sellers receive a fair price and to protect certain industries or workers from being exploited by low wages. By setting a price floor, the government aims to create a minimum standard of living for workers and prevent prices from falling too low, which could lead to market inefficiencies.

    Rate this question:

  • 24. 

    What is inflation?

    • A fall in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter

    • A rise in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter

    • A fall in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter

    • A rise in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter

    Correct Answer
    A. A rise in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter
    Explanation
    Inflation refers to a rise in the general level of prices. When inflation occurs, the cost of goods, clothing, and shelter increases. As a result, workers need more money to afford these items. This is because the purchasing power of money decreases during inflation, and it takes more currency to purchase the same goods and services.

    Rate this question:

  • 25. 

    On the PPF how can a nation achieve growth?

    • By having more resources or increased productivity

    • By having an increase in supply and demand

    • By having less resources or declined productivity

    • By having an increase in resources and decrease in productivity

    Correct Answer
    A. By having more resources or increased productivity
    Explanation
    A nation can achieve growth on the PPF by either having more resources or by increasing productivity. Having more resources means that the nation can produce more goods and services, which leads to economic growth. Increased productivity means that the nation can produce more output with the same amount of resources, which also leads to economic growth. Both of these factors contribute to the nation's ability to produce more and improve its overall economic performance.

    Rate this question:

  • 26. 

    Name the three types of taxes?

    • Proportional, proposed, regressive

    • Regressive, proportional, probable

    • Regressive, retaining, proposed

    • Progressive, proportional, regressive

    Correct Answer
    A. Progressive, proportional, regressive
    Explanation
    The three types of taxes are progressive, proportional, and regressive. Progressive taxes are based on the principle that individuals with higher incomes should pay a higher percentage of their income in taxes. Proportional taxes, also known as flat taxes, require all individuals to pay the same percentage of their income in taxes. Regressive taxes, on the other hand, impose a higher tax burden on individuals with lower incomes, as the percentage of their income paid in taxes decreases as their income increases.

    Rate this question:

  • 27. 

    What is the FDA?

    • Flooding Damage Association

    • Federal Drug Administration

    • Food and Drug Administration

    • Federal Department of Aviation

    Correct Answer
    A. Food and Drug Administration
    Explanation
    The correct answer is Food and Drug Administration. The FDA is a regulatory agency in the United States that is responsible for protecting public health by ensuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, food supply, cosmetics, and products that emit radiation. They regulate and approve drugs and medical devices, conduct inspections of facilities, enforce regulations, and monitor the safety of products in the market.

    Rate this question:

  • 28. 

    Name three types of businesses

    • Traditional, command, market

    • Command, market, competitive

    • Traditional, market, competitive

    • Command, traditional, competitive

    Correct Answer
    A. Traditional, command, market
    Explanation
    The correct answer is traditional, command, market. These three types of businesses refer to different economic systems. Traditional businesses are based on customs and traditions, where economic decisions are made based on long-established practices. Command businesses are controlled by the government, where decisions are made centrally by a governing authority. Market businesses operate in a free market system, where economic decisions are determined by supply and demand forces in the marketplace.

    Rate this question:

  • 29. 

    Name the types of businesses

    • Proprietorship, corporation, industrial

    • Partnership, industrial, commercial

    • Corporation, proprietorship, commercial

    • Proprietorship, partnership, corporation

    Correct Answer
    A. Proprietorship, partnership, corporation
    Explanation
    The answer "Proprietorship, partnership, corporation" correctly identifies the types of businesses. A proprietorship is a business owned and operated by a single individual. A partnership is a business owned by two or more individuals who share profits and liabilities. A corporation is a legal entity that is separate from its owners and shareholders. These three types of businesses represent common structures that individuals can choose when starting a business.

    Rate this question:

  • 30. 

    What is total cost?

    • Variable plus fixed cost

    • All cost associated with production

    • All cost except for the cost of manufacturing

    • A and b

    Correct Answer
    A. A and b
    Explanation
    The correct answer is "a and b" because total cost includes both variable and fixed costs, as well as all costs associated with production. This means that it encompasses all costs, including those related to manufacturing. Therefore, options "variable plus fixed cost" and "all cost associated with production" are both correct explanations for total cost.

    Rate this question:

  • 31. 

    What are marginal costs?

    • Extra cost of pruducing one additional unit of production

    • Additional cost associated with lack of demand

    • Cost above and beyond normal associated costs

    • Cost formed by excess production

    Correct Answer
    A. Extra cost of pruducing one additional unit of production
    Explanation
    Marginal costs refer to the additional cost incurred by producing one more unit of production. It represents the increase in total cost when output is increased by one unit. This concept helps businesses determine the optimal level of production by comparing the marginal cost with the marginal revenue. By understanding the marginal costs, companies can make informed decisions about pricing, production levels, and resource allocation to maximize their profitability.

    Rate this question:

  • 32. 

    Definition of Entrepreneur?

    • A risk taker in search of profits who's initila investment must be returned

    • A investor in search of profits who does something new with existing resources

    • A investor in search of profits who's initial investment must be returned

    • A risk taker in search of profits who does something new with existing resources

    Correct Answer
    A. A risk taker in search of profits who does something new with existing resources
    Explanation
    An entrepreneur is someone who takes risks in order to make a profit by introducing something new or innovative using existing resources. This definition captures the essence of entrepreneurship, which involves identifying opportunities, taking calculated risks, and creating value by introducing new products, services, or business models. The emphasis on "doing something new" differentiates entrepreneurs from mere investors, while the mention of "existing resources" highlights the importance of resourcefulness and creativity in entrepreneurship.

    Rate this question:

  • 33. 

    Definition of Entrepreneur?

    • A risk taker in search of profits who's initila investment must be returned

    • A investor in search of profits who does something new with existing resources

    • A investor in search of profits who's initial investment must be returned

    • A risk taker in search of profits who does something new with existing resources

    Correct Answer
    A. A risk taker in search of profits who does something new with existing resources
    Explanation
    This definition of an entrepreneur states that they are a risk taker who seeks profits by doing something new with existing resources. This implies that entrepreneurs are willing to take on risks and explore innovative ideas to create value and generate profits. It also suggests that entrepreneurs are not solely focused on their initial investment but rather on the potential returns they can achieve.

    Rate this question:

  • 34. 

    Economists keep track of inflation by calculating the

    • Lagging indicators.

    • Net domestic product.

    • Reserve requirements.

    • Consumer price index.

    Correct Answer
    A. Consumer price index.
    Explanation
    Economists keep track of inflation by calculating the consumer price index. The consumer price index measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is used to monitor changes in the cost of living and to adjust wages and benefits for inflation. By tracking the consumer price index, economists can analyze inflation trends and make informed decisions regarding monetary policy and economic stability.

    Rate this question:

  • 35. 

    What occurs when producers will not or cannot offer goods and services at the current prices is _______.

    • Shortage

    • Scarcity

    • Depression

    • Regression

    Correct Answer
    A. Shortage
    Explanation
    When producers are unable or unwilling to provide goods and services at the existing prices, a shortage occurs. This means that the demand for the goods and services exceeds the supply, leading to a situation where there is not enough of the product available to meet the needs or desires of consumers.

    Rate this question:

  • 36. 

    What are the goals of the American Free Enterprise?

    • Economic freedom, voluntary exchange, private property rights, profit motive, and competition

    • Economic freedom, lack on monopolies, private property rights, profit motive, and competition

    • Economic freedom, voluntary exchange, prevailence of rights, profit motive, and competition

    • Economic freedom, voluntary exchange, private property rights, profit margain reduction, and competition

    Correct Answer
    A. Economic freedom, voluntary exchange, private property rights, profit motive, and competition
    Explanation
    The goals of the American Free Enterprise include economic freedom, which allows individuals and businesses to make their own economic decisions without government interference. Voluntary exchange refers to the ability to freely buy and sell goods and services. Private property rights ensure that individuals have the right to own and control their own property. The profit motive drives businesses to maximize profits and incentivizes innovation and growth. Competition encourages businesses to strive for efficiency and offer better products and services to consumers.

    Rate this question:

  • 37. 

    What is variable cost?

    • Cost that varies as output changes

    • Cost that does not vary as output changes

    • Cost that varies as production changes

    • Cost that does not vary as output changes

    Correct Answer
    A. Cost that varies as output changes
    Explanation
    Variable cost refers to the cost that changes in direct proportion to the level of output or production. This means that as the output or production increases or decreases, the variable cost will also increase or decrease accordingly. Variable costs are typically associated with the cost of raw materials, direct labor, and other inputs that are directly linked to the production process. Unlike fixed costs, which remain constant regardless of the level of output, variable costs fluctuate with the changes in production.

    Rate this question:

  • 38. 

    What is the law of demand?

    • Rule stating that the quantity demanded of a good or service does not vary with its availability

    • Rule stating that the quantity demanded of a good or service does not vary with its price

    • Rule stating that the quantity demanded of a good or service varies inversely with its availability

    • Rule stating that the quantity demanded of a good or service varies inversely with its price

    Correct Answer
    A. Rule stating that the quantity demanded of a good or service varies inversely with its price
    Explanation
    The law of demand states that the quantity demanded of a good or service varies inversely with its price. This means that as the price of a good or service increases, the quantity demanded decreases, and vice versa. This relationship between price and quantity demanded is a fundamental principle in economics, as it helps to explain consumer behavior and market dynamics.

    Rate this question:

  • 39. 

    What is Shortage?

    • A situation in which the quantity demanded is greater than the quantity supplied at a given price

    • A situation in which the quantity demanded is less than the quantity supplied at a given price

    • A situation in which the quantity demanded is not offered by the manufacturer

    • A situation in which the quantity demanded can not meet the supply provided

    Correct Answer
    A. A situation in which the quantity demanded is greater than the quantity supplied at a given price
    Explanation
    Shortage refers to a situation where the quantity demanded exceeds the quantity supplied at a specific price. In other words, there is an insufficient supply to meet the demand at that particular price level. This can lead to various consequences such as higher prices, rationing, or even market imbalances.

    Rate this question:

  • 40. 

    What is inelastic?

    • When a given change in quantity demanded causes a relatively smaller change in price

    • When a given change in price causes a relatively larger change in the quantity demanded

    • When a given change in price causes a relatively smaller change in the quantity demanded

    • When a given change in quantity demanded causes a relatively larger change in price

    Correct Answer
    A. When a given change in price causes a relatively smaller change in the quantity demanded
    Explanation
    When a given change in price causes a relatively smaller change in the quantity demanded, it indicates that the demand for the product is inelastic. This means that consumers are not very sensitive to changes in price and are willing to pay a higher price for the product. Inelastic demand often occurs for essential goods or products with limited substitutes, where consumers have fewer options and are willing to pay more regardless of price changes.

    Rate this question:

  • 41. 

    What is a horizontal merger?

    • When two or more firms that produce the same kind of product join

    • When two or more firms that produce a different kind of product join

    • When three or more firms that produce the same kind of product join

    • When three of more firms that produce a different kind of product join

    Correct Answer
    A. When two or more firms that produce the same kind of product join
    Explanation
    A horizontal merger refers to the joining of two or more firms that produce the same kind of product. This type of merger allows the companies involved to combine their resources, increase their market share, and potentially reduce competition. By joining forces, these firms can achieve economies of scale, improve efficiency, and gain a stronger position in the market for their specific product.

    Rate this question:

  • 42. 

    What does the word utility mean?

    • Ability of capacity of a good or service to be used in the manufacturing of a product

    • Lack of capability a good or service might have to be used in the manufacturing of a product

    • Ability or capacity of a good or service to be useful and give satisfaction to someone

    • Lack of capability a good or service might have to be useful and give satisfaction to someone

    Correct Answer
    A. Ability or capacity of a good or service to be useful and give satisfaction to someone
    Explanation
    The word "utility" refers to the ability or capacity of a good or service to be useful and give satisfaction to someone. It implies that the good or service can fulfill a need or desire and provide value to the person using it.

    Rate this question:

  • 43. 

    Definition of Capital?

    • The tools, equipment used in the production of goods

    • The machinery, and factories used in the production of goods

    • The tools, and machinery used in the production of goods

    • A and B

    • B and C

    Correct Answer
    A. A and B
    Explanation
    The correct answer is A and B. Capital refers to the tools, equipment, machinery, and factories used in the production of goods. This includes both the physical tools and the infrastructure necessary for production. Therefore, options A and B are both correct as they encompass these elements.

    Rate this question:

  • 44. 

    What is Surplus?

    • A situation in which the quantity supplied is not met by the manufacturer

    • A situation in which the quantity demanded is greater than the quantity demanded at a given price

    • A situation in which the quantity supplied is less than the quantity demanded at a given price

    • A situation in which the quantity supplied is greater than the quantity demanded at a given price

    Correct Answer
    A. A situation in which the quantity supplied is greater than the quantity demanded at a given price
    Explanation
    Surplus refers to a situation in which the quantity supplied is greater than the quantity demanded at a given price. This means that there is an excess supply of a product or service in the market, leading to a surplus. In such a scenario, producers may have to lower prices or reduce production to match the lower demand. The surplus can result in a decrease in prices until equilibrium is reached, where quantity supplied equals quantity demanded.

    Rate this question:

  • 45. 

    What are the three functions of money?

    • Measure of value, store of value, and direction of value

    • Medium of exchange, measure of value, and store or value

    • Measure of value, medium of exchange, and compliance of value

    • Medium of exchange, store of value, direction of value

    Correct Answer
    A. Medium of exchange, measure of value, and store or value
    Explanation
    The three functions of money are medium of exchange, measure of value, and store of value. Money serves as a medium of exchange because it is widely accepted as a form of payment for goods and services. It also acts as a measure of value, allowing for the comparison of the worth of different goods and services. Lastly, money functions as a store of value, meaning it can be saved and used for future purchases or investments.

    Rate this question:

  • 46. 

    What was the Sherman Anti-trust Act?

    • An act which put in place the monopolistic ideals of many buisnesses today

    • An act to protect trade and commerce against unlawful restraint and monopoly

    • An act that abolished the right to trade with foreign countries anything that was made on U.S soil

    • An act that caused trade and commerce to nearly cease

    Correct Answer
    A. An act to protect trade and commerce against unlawful restraint and monopoly
    Explanation
    The Sherman Anti-trust Act was enacted to protect trade and commerce from being restricted or monopolized unlawfully. It aimed to promote fair competition and prevent the formation of trusts or monopolies that could harm the economy and consumers. The act sought to ensure that businesses operated within legal boundaries and did not engage in anti-competitive practices that could stifle competition and harm smaller businesses. By prohibiting certain business practices that restrained trade or created monopolies, the act aimed to maintain a level playing field and foster a healthy and competitive marketplace.

    Rate this question:

  • 47. 

    If demand for a product is very elastic,

    • Quantity demanded will fall when the price rises.

    • Quantity demanded will remain largely unchanged when the price rises.

    • Quantity demanded will rise when the price rises.

    • Quantity demanded will not equal the quantity supplied.

    Correct Answer
    A. Quantity demanded will fall when the price rises.
    Explanation
    When the demand for a product is very elastic, it means that a small change in price will result in a significant change in the quantity demanded. Therefore, if the price of the product rises, the quantity demanded will fall. This is because consumers are highly responsive to price changes and are likely to seek alternatives or reduce their consumption when the price increases.

    Rate this question:

  • 48. 

    What causes the increase in supply?

    • The increase/decrease in demand

    • The increase/decrease in production

    • The increase/decrease in volume

    • The increase/decrease in price

    Correct Answer
    A. The increase/decrease in demand
    Explanation
    An increase in demand can cause an increase in supply because when there is an increase in demand for a particular product or service, producers are motivated to increase their production in order to meet the higher demand. This can be done by increasing the quantity of goods produced or by expanding production capacity. As a result, the supply of the product or service increases to match the increased demand. Conversely, a decrease in demand would likely lead to a decrease in supply as producers reduce their production levels to match the lower demand.

    Rate this question:

  • 49. 

    What is a price ceiling?

    • A minimum legal price in order to maintain agreement

    • A maximum legal price in order to maintain agreement

    • A maximum legal price that can be charged for a product

    • A minimum legal price that can be charged for a product

    Correct Answer
    A. A maximum legal price that can be charged for a product
    Explanation
    A price ceiling is a maximum legal price that can be charged for a product. This means that the price of the product cannot exceed the specified limit set by the government or regulatory authority. The purpose of a price ceiling is to protect consumers by preventing prices from rising too high and making the product unaffordable. It is often implemented in markets where there is a concern about price gouging or monopolistic practices.

    Rate this question:

Quiz Review Timeline (Updated): Mar 22, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 17, 2014
    Quiz Created by
    CJACOBSEN
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.