Can You Pass This Basic Economics Test? Quiz

11 Questions | By Cha24ampong | Updated: Mar 20, 2022 | Attempts: 1068

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Can You Pass This Basic Economics Test? Quiz - Quiz

Some people want to seek a career in economics but do know much, especially when it comes to the basics of this study. This is an online interactive quiz in Economics meant to test your knowledge in Economics as well as give you extra knowledge in the subject. Take it up and see if you can pass it with ease or might need some more practice before the exam comes.

Questions and Answers

1.

1. Which of the following decisions must be made by all economies?
- A.
  
  A. How much to produce? When to produce? How much does it cost?
- B.
  
  B. What is the price? Who will produce it? Who will consume it?
- C.
  
  C. What to produce? How to produce? For whom to produce?
- D.
  
  D. none of the above.
2.

2. The student who has one evening in which to prepare for two exams on the following day has the following two alternatives: Possibility Score in Economics Score in Accounting A 95 80 B 80 90 A 95 80 B 80 90 The opportunity cost of receiving 90, rather than 80, on the accounting exam is represented by how many points on the economic exam?
- A.
  
  15 points.
- B.
  
  80 points.
- C.
  
  90 points.
- D.
  
  10 points.
3.

3. Opportunity cost is the
- A.
  
  Purchase price of a good or service.
- B.
  
  Value of leisure time plus out-of-pocket costs.
- C.
  
  Best option given up as a result of choosing an alternative.
- D.
  
  Undesirable sacrifice required to purchase a good.
4.

4. On a production possibilities curve, the opportunity cost of more units of good A in terms of units of good B is represented by
- A.
  
  The distance to the curve from the vertical axis.
- B.
  
  The distance to the curve from the horizontal axis.
- C.
  
  The movement along the horizontal axis.
- D.
  
  All of the above.
5.

8. Using a production possibilities curve, unemployment is represented by a point located
- A.
  
  Near the middle of the curve.
- B.
  
  At the top corner of the curve.
- C.
  
  At the bottom corner of the curve.
- D.
  
  Outside the curve.
- E.
  
  Inside the curve.
6.

9. Along a production possibilities curve, an increase in the production of one good can be accomplished only by
- A.
  
  Decreasing the production of another good.
- B.
  
  Increasing the production of another good.
- C.
  
  Holding constant the production of another good.
- D.
  
  Producing at a point on the corner of the curve.
7.

10. Education and training that improve the skill of the labor force are represented on the production possibilities curve by a (an)
- A.
  
  Movement along the curve.
- B.
  
  Inward shift of the curve.
- C.
  
  Outward shift of the curve.
- D.
  
  Movement toward the curve from an exterior point.
8.

A nation can accelerate its economic growth by
- A.
  
  Reducing the number of immigrants allowed into the country.
- B.
  
  Adding to its capital stock.
- C.
  
  Printing more money.
- D.
  
  Imposing tariffs and quotas on imported goods.
9.

5. If a farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, the farmer should add fertilizer if it costs less than
- A.
  
  $12.50 per pound.
- B.
  
  $20 per pound.
- C.
  
  $80 per pound.
- D.
  
  $100 per pound.
10.

7. Any point inside the production possibilities curve is a (an)
- A.
  
  Efficient point.
- B.
  
  Unfeasible point.
- C.
  
  Inefficient point.
- D.
  
  Maximum output combination.
11.

10. Education and training that improve the skill of the labor force are represented on the production possibilities curve by a (an)
- A.
  
  Movement along the curve.
- B.
  
  Inward shift of the curve.
- C.
  
  Outward shift of the curve.
- D.
  
  Movement toward the curve from an exterior point.