A Brief Economics Practice Test Quiz!

27 Questions

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A Brief Economics Practice Test Quiz!

Human wants are unlimited, but the resources used to meet them are scarce. This, therefore, means that organizations and governments need to know how to use these resources and meet human wants. Economics gives us an idea of how to do it. This practice test is for reviewing on your economics knowledge. You can attempt it as often as you like. Your scores will not be recorded. All the best!


Questions and Answers
  • 1. 
    What is the financial gain made in transactions? 
    • A. 

      Profit

    • B. 

      Resource

    • C. 

      Scarcity

    • D. 

      Wage

  • 2. 
    If a person makes a necklace that only costs $2.00 to make, and then sells the necklace for $12.00, they made a $10.00 ____?_____. 
    • A. 

      Wage

    • B. 

      Demand

    • C. 

      Profit

    • D. 

      Equilibrium price

  • 3. 
    What is an economic or productive factor required to accomplish an activity? 
    • A. 

      Specialization

    • B. 

      Resource

    • C. 

      Traditional system

    • D. 

      Wage

  • 4. 
     What is it called when you have limited quantities of resources used to meet unlimited wants?
    • A. 

      Profit

    • B. 

      Specialization

    • C. 

      Cartel

    • D. 

      Scarcity

  • 5. 
    What is the concentration of the productive efforts of individuals and firms on a limited number of activities? 
    • A. 

      Socialism

    • B. 

      Specialization

    • C. 

      Factors of production

    • D. 

      Free enterprise

  • 6. 
    What is a social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society? 
    • A. 

      Captialism

    • B. 

      Socialism

    • C. 

      Traditional system

    • D. 

      Microeconomics

  • 7. 
    What is an economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services? 
    • A. 

      Capitalism

    • B. 

      Socialism

    • C. 

      Traditional system

    • D. 

      Barter system

  • 8. 
    What is a payment made by an employer to an employee? 
    • A. 

      Profit

    • B. 

      Marginal

    • C. 

      Interest

    • D. 

      Wage

  • 9. 
    • A. 

      Cartel

    • B. 

      Traditional system

    • C. 

      Command system

    • D. 

      Corporation

  • 10. 
    What are two goods that are bought and used together? 
    • A. 

      Monopolistic competition

    • B. 

      Market system

    • C. 

      Complementary goods

    • D. 

      Efficiency

  • 11. 
    What is a legal entity owned by individual stockholders? 
    • A. 

      Capital

    • B. 

      Free enterprise

    • C. 

      Specialization

    • D. 

      Corporation

  • 12. 
    What is the desire to own something and the ability to pay for it called? 
    • A. 

      Demand

    • B. 

      Allocation

    • C. 

      Capital

    • D. 

      Opportunity cost

  • 13. 
    What is the measure of how consumers react to a change in price? 
    • A. 

      Elasticity

    • B. 

      Marginal

    • C. 

      Equilibrium price

    • D. 

      Scarcity

  • 14. 
    What is the point at which the quantity demanded and the quantity supplied are equal called? 
    • A. 

      Elasticity

    • B. 

      Efficiency

    • C. 

      Equilibrium price

    • D. 

      Production possibilites

  • 15. 
     What is the study of economic behavior and decision makings of small units, such as individuals, families, and businesses called?
    • A. 

      Macroeconomics

    • B. 

      Microeconomics

    • C. 

      Economics

    • D. 

      Economic statistics

  • 16. 
    What is a market structure in which many companies sell products that are similar but not identical? 
    • A. 

      Monopoly

    • B. 

      Traditional system

    • C. 

      Oligopoly

    • D. 

      Monopolistic competition

  • 17. 
    The KIA plant was built by which country?
    • A. 

      North Korea

    • B. 

      South Korea

    • C. 

      China

  • 18. 
    The machines and robots at the KIA plant are an example of what?
    • A. 

      Capital

    • B. 

      Economic technology

    • C. 

      Specialization

  • 19. 
    The KIA plant was built in what Georgia city?
    • A. 

      Middleton

    • B. 

      Atlanta

    • C. 

      West Point

  • 20. 
    Which country represents a substantial degree of socialism?
    • A. 

      Denmark

    • B. 

      Canada

    • C. 

      United Kingdom

  • 21. 
    Corporations are in business for what?
    • A. 

      Profit

    • B. 

      Non-profit

    • C. 

      Stockholders

  • 22. 
    At full capacity, the KIA plant should produce how many vehicles per year?
    • A. 

      250,000,000

    • B. 

      1 billion

    • C. 

      300,000

  • 23. 
    • A. 

      Capitalism

    • B. 

      Monopolistic competition

    • C. 

      Incentive

  • 24. 
    • A. 

      $1 billion

    • B. 

      $2 billion

    • C. 

      $3 billion

  • 25. 
    What is financial compensation in exchange for labor?
    • A. 

      Profit

    • B. 

      Wage

    • C. 

      Capital

  • 26. 
    What is the hourly wage at KIA?
    • A. 

      $14-21/hr

    • B. 

      $15-25/hr

    • C. 

      $12-22/hr

  • 27. 
    When a consumer buys a car from a dealership, this is an example of what?
    • A. 

      Macroeconomics

    • B. 

      Microeconomics

    • C. 

      Home Economics