Trivia: Economics Knowledge Quiz! Test

22 Questions | Total Attempts: 68

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Trivia: Economics Knowledge Quiz! Test - Quiz

How much knowledge of economics do you have? Do you believe you can pass this quiz? With this quiz, you will be responsible for learning what the three factors of production are, what does the production possibility curve show us, what happens when prices rise, what is the shift in supply caused by, what is elastic demand, and what is the law of diminishing returns. This quiz will demonstrate your knowledge of economics. Invest in yourself and your expertise.


Questions and Answers
  • 1. 
    What are the 3 Factors of Production?
    • A. 

      Land/Work/Revenue

    • B. 

      Land/Labour/Revenue

    • C. 

      Labour/Capital/Land

    • D. 

      Capital/Work/Primary Goods

  • 2. 
    What is the Production Possibility Curve?
    • A. 

      Curve showing Supply and Demand

    • B. 

      Curve showing all possible combinations of all goods that a country can produce

    • C. 

      A curve showing the possible combinations of two goods that a country can produce within a specified time with all resources employed

    • D. 

      Shows what a country can produce with all resources fully employed

  • 3. 
    What does Production Possibility Curve NOT show us?  
    • A. 

      Opportunity costs

    • B. 

      Marginal costs

    • C. 

      Increasing/decreasing opportunity costs

    • D. 

      Growth in potential output

  • 4. 
    Law of Demand states:
    • A. 

      As prices rise the quantity demanded rises

    • B. 

      As prices rise the quantity demanded falls

    • C. 

      As supply increases demand increases

    • D. 

      As supply increases demand decreases

  • 5. 
    Shift ALONG a demand curve is caused by:
    • A. 

      Price

    • B. 

      Fashion

    • C. 

      Income

    • D. 

      Supply

  • 6. 
    Shift IN THE demand curve is NOT caused by:
    • A. 

      Tastes

    • B. 

      Price of substitute goods

    • C. 

      Price of complementary goods

    • D. 

      Price of the product

  • 7. 
    As prices rise, the quantity supplied increases is…
    • A. 

      Law of Demand

    • B. 

      Shift in supply curve

    • C. 

      Shift in demand curve

    • D. 

      Law of Supply

  • 8. 
    The shift in supply can be caused by a number of: 
    • A. 

      Costs of production

    • B. 

      Profitability of alternative products

    • C. 

      Profitability of goods in joint supply

    • D. 

      Nature and other random shocks

    • E. 

      Aims of producers

    • F. 

      Expectations of producers

    • G. 

      All of the above

  • 9. 
    Where Demand Equals Supply is:
    • A. 

      Equilibrium Revenue

    • B. 

      Equilibrium Costs

    • C. 

      Equilibrium Price

    • D. 

      Equilibrium Output

  • 10. 
    What happens to the Equilibrium if both Demand and Supply shift right?  QD = Quantity Demanded P = Price
    • A. 

      – Decreased QD, Same P

    • B. 

      – Decreased P, Same QD

    • C. 

      – Increased QD, Same P

    • D. 

      – Increased P, Same QD

  • 11. 
    Formula: %DQd / %DP is
    • A. 

      Formula for Elasticity

    • B. 

      Formula for Price

    • C. 

      Formula for Price Elasticity of Supply

    • D. 

      Formula for Price Elasticity of Demand

  • 12. 
    >1 means... <1 means... =1 means...
  • 13. 
    Elastic Demand
    • A. 

      Revenue falls as price falls

    • B. 

      Revenue falls as demand falls

    • C. 

      Revenue rises as price rises

    • D. 

      Revenue falls as price rises

  • 14. 
    Destabilising Speculation
    • A. 

      When producers sell more to make a greater revenue

    • B. 

      When buyers buy more (buying in bulk)

    • C. 

      When buyers/sellers believe a change in price means similar changes in the future

    • D. 

      When buyers/sellers believe a change in price is only temporary

  • 15. 
    Short Run Production
    • A. 

      When all factors (fixed and variable factors of production) remain the same

    • B. 

      When at least one factor remains the same

    • C. 

      When no factors of production are the same

    • D. 

      When only fixed factors remain the same.

  • 16. 
    Law of Diminishing Returns
    • A. 

      When one extra unit of a variable factor will produce less extra output than the previous unit

    • B. 

      When the company or firm produces less

    • C. 

      When a firm begins to lose money

    • D. 

      When one extra unit of a fixed factor will produce less extra output than the previous unit

  • 17. 
    Average Physical Product
    • A. 

      APP = TPP/QV

    • B. 

      APP = TPP/QV

    • C. 

      APP =MPP/Lb

    • D. 

      APP = TTP/Lb

  • 18. 
    Law of Diminishing Returns
    • A. 

      When one extra unit of a variable factor will produce less extra output than the previous unit

    • B. 

      When the company or firm produces less

    • C. 

      When a firm begins to lose money

    • D. 

      When one extra unit of a fixed factor will produce less extra output than the previous unit

  • 19. 
    Average Physical Product
    • A. 

      APP = TPP/QV

    • B. 

      APP = TPP/QV

    • C. 

      APP =MPP/Lb

    • D. 

      APP = TTP/Lb

  • 20. 
    What is - DTPP/DQV?
    • A. 

      Total Revenue

    • B. 

      Marginal Physical Product

    • C. 

      Marginal Physical Costs

    • D. 

      Total Fixed Costs

  • 21. 
    Monopolies encourage risk taking.
    • A. 

      True

    • B. 

      False

  • 22. 
    Companies in monopolistic competition markets can make supernormal profit in the long-term
    • A. 

      True

    • B. 

      False

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