Economics Practice Test Questions And Answers

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Economics Practice Test Questions And Answers - Quiz

Hey, do you think yourself an economics expert? If yes, then here's a challenge for you. Take this Economics practice test quiz and see if you can score more than 80% on it. Economics is a very interesting subject. It helps us deal with the problem of resource scarcity and how to deal with it efficiently. People who are an expert in this subject study the economic condition of society and know-how to make the most of the resources that are available to us. Try this quiz and refresh your concepts today!


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

      Profit

    • B. 

      Resource

    • C. 

      Scarcity

    • D. 

      Wage

  • 2. 
    What is an economic or productive factor required to accomplish an activity? 
    • A. 

      Specialization

    • B. 

      Resource

    • C. 

      Traditional system

    • D. 

      Wage

  • 3. 
    Name the 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

  • 4. 
    The payment made by an employer to an employee is called _____. 
    • A. 

      Profit

    • B. 

      Marginal

    • C. 

      Interest

    • D. 

      Wage

  • 5. 
    The formal organization of producers that agree to coordinate prices and production is called __________. 
    • A. 

      Cartel

    • B. 

      Traditional system

    • C. 

      Command system

    • D. 

      Corporation

  • 6. 
    What are two goods that are bought and used together? 
    • A. 

      Monopolistic competition

    • B. 

      Market system

    • C. 

      Complementary goods

    • D. 

      Efficiency

  • 7. 
    The legal entity owned by individual stockholders is termed as _______. 
    • A. 

      Capital

    • B. 

      Free enterprise

    • C. 

      Specialization

    • D. 

      Corporation

  • 8. 
    The desire to own something and the ability to pay for it called __________. 
    • A. 

      Demand

    • B. 

      Allocation

    • C. 

      Capital

    • D. 

      Opportunity cost

  • 9. 
    The measure used to determine how consumers react to a change in price is termed as _______.  
    • A. 

      Elasticity

    • B. 

      Marginal

    • C. 

      Equilibrium price

    • D. 

      Scarcity

  • 10. 
    The point at which the quantity demanded and the quantity supplied are equal is called ________. 
    • A. 

      Elasticity

    • B. 

      Efficiency

    • C. 

      Equilibrium price

    • D. 

      Production possibilites

  • 11. 
    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

  • 12. 
    Name the market structure in which many companies sell products that are similar but not identical. 
    • A. 

      Monopoly

    • B. 

      Traditional system

    • C. 

      Oligopoly

    • D. 

      Monopolistic competition

  • 13. 
    The KIA plant was built by which country?
    • A. 

      North Korea

    • B. 

      South Korea

    • C. 

      China

    • D. 

      USA

  • 14. 
    The machines and robots at the KIA plant are an example of ________. 
    • A. 

      Capital

    • B. 

      Economic technology

    • C. 

      Specialization

    • D. 

      None of the above

  • 15. 
    Which country represents a substantial degree of socialism?
    • A. 

      Denmark

    • B. 

      Canada

    • C. 

      United Kingdom

    • D. 

      Australia

  • 16. 
    Corporations are in business for ________. 
    • A. 

      Profit

    • B. 

      Non-profit

    • C. 

      Stockholders

    • D. 

      Loss

  • 17. 
    At full capacity, the KIA plant should produce ______ vehicles per year.
    • A. 

      250,000,000

    • B. 

      1 billion

    • C. 

      300,000

    • D. 

      2 billion

  • 18. 
    When a state agrees to lower a tax rate for one corporation so that the corporation builds a plant or factory in that state, it is an example of _____. 
    • A. 

      Capitalism

    • B. 

      Monopolistic competition

    • C. 

      Incentive

    • D. 

      None of the above

  • 19. 
    What is financial compensation in exchange for labor called? 
    • A. 

      Profit

    • B. 

      Wage

    • C. 

      Capital

    • D. 

      Loss

  • 20. 
    When a consumer buys a car from a dealership, this is an example of ______. 
    • A. 

      Macroeconomics

    • B. 

      Microeconomics

    • C. 

      Home Economics

    • D. 

      Statistics 

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