Economics Hardest Exam Quiz: Trivia

70 Questions | Total Attempts: 557

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Economics Quizzes & Trivia

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Questions and Answers
  • 1. 
    What is Economics?
    • 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

    • B. 

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

    • C. 

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

    • D. 

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

  • 2. 
    What is Scarcity?
    • A. 

      Giving something up to have something else

    • B. 

      Extra cost of producing one additional unit of production

    • C. 

      The condition that results from society not having enough resources to produce all the things people would like to have

    • D. 

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

  • 3. 
    What are the three basic economic questions?
    • A. 

      What, where, whom

    • B. 

      What, how, whom

    • C. 

      How, whom, when

    • D. 

      What, why, whom

  • 4. 
    What are the four factors of production?
    • A. 

      Land, capital, money, entrepreneurs

    • B. 

      Land, capital, labor, entrepreneurs

    • C. 

      Capital, money, supply, demand

    • D. 

      Labor, capital, supply, demand

  • 5. 
    Definition of Capital?
    • A. 

      The tools, equipment used in the production of goods

    • B. 

      The machinery, and factories used in the production of goods

    • C. 

      The tools, and machinery used in the production of goods

    • D. 

      A and B

    • E. 

      B and C

  • 6. 
    Definition of Labor?
    • A. 

      People with all of the efforts, abilities, and skills

    • B. 

      The people who are for hire for work

    • C. 

      People with all of the workmanship, skills, and work

    • D. 

      The act of performing work at any given time

  • 7. 
    Definition of Entrepreneur?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

  • 8. 
    What are the many payments for the factors of productions called?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

  • 9. 
    What is opportunity cost?
    • A. 

      The cost assosiated with any opportunity

    • B. 

      Giving the cost in order to have the opportunity

    • C. 

      The cost required in order to succeed

    • D. 

      Giving something up to have something else

  • 10. 
    What is PPF?
    • A. 

      Possible Production Frontier

    • B. 

      Production Possibilities Frontier

    • C. 

      Probable Projection Frontier

    • D. 

      Projected Possibilities Frontier

  • 11. 
    On the PPF how can a nation achieve growth?
    • A. 

      By having more resources or increased productivity

    • B. 

      By having an increase in supply and demand

    • C. 

      By having less resources or declined productivity

    • D. 

      By having an increase in resources and decrease in productivity

  • 12. 
    What does a point inside the curve on a PPF represent?
    • A. 

      Production at greater than its minimum potential

    • B. 

      Production as less than its minimum potential

    • C. 

      Production at greater than its maximum potential

    • D. 

      Production as less than its maximum potential

  • 13. 
    What are the functions of the entrepreneur?
    • A. 

      They provide the money necessary for the resources of land, labor, and capital

    • B. 

      They provide the procedures that combines the resources of land, labor, and capital into new products

    • C. 

      They provide the initiative that combines the resources of land, labor, and capital into new products

    • D. 

      They provide the drive necessary for the resources of land, labor, and capital

  • 14. 
    Name three types of businesses
    • A. 

      Traditional, command, market

    • B. 

      Command, market, competitive

    • C. 

      Traditional, market, competitive

    • D. 

      Command, traditional, competitive

  • 15. 
    Name the types of businesses
    • A. 

      Proprietorship, corporation, industrial

    • B. 

      Partnership, industrial, commercial

    • C. 

      Corporation, proprietorship, commercial

    • D. 

      Proprietorship, partnership, corporation

  • 16. 
    What are the goals of the American Free Enterprise?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

  • 17. 
    What is the law of demand?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

  • 18. 
    What is the law of supply?
    • A. 

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

    • B. 

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

  • 19. 
    What causes the demand curve to shift?
    • A. 

      The increase/decrease in need

    • B. 

      The increase/decrease in volume

    • C. 

      The increase/decrease in price

    • D. 

      The increase/decrease in production

  • 20. 
    What causes the increase in supply?
    • A. 

      The increase/decrease in demand

    • B. 

      The increase/decrease in production

    • C. 

      The increase/decrease in volume

    • D. 

      The increase/decrease in price

  • 21. 
    What is Shortage?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

  • 22. 
    What is Surplus?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

  • 23. 
    What is a price ceiling?
    • A. 

      A minimum legal price in order to maintain agreement

    • B. 

      A maximum legal price in order to maintain agreement

    • C. 

      A maximum legal price that can be charged for a product

    • D. 

      A minimum legal price that can be charged for a product

  • 24. 
    What is a price floor?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

  • 25. 
    What is elastic?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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