A Trivia Quiz On Principles Of Economics

21 Questions | Total Attempts: 1268

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Economics Quizzes & Trivia

Economics is a study in which we get to identify how unlimited wants can be met when it comes to very limited resources. This means that people have to make choices on directions to take based on the returns they may garner. Take up this test on some of the principles of economics and see how attentive you have been in microeconomics class.


Questions and Answers
  • 1. 
    Trade between nations is known as......
    • A. 

      Inter-state trade

    • B. 

      Domestic trade

    • C. 

      International trade

    • D. 

      Internal trade

  • 2. 
    Examples of both injection and withdrawal/leakage into the national economy are.....
    • A. 

      Taxes and savings

    • B. 

      Import and saving

    • C. 

      Government spending and taxes

    • D. 

      Import and investment

  • 3. 
    Market failure as a reason for public finance can be attributed to the following:
    • A. 

      Existence of externalities and public goods

    • B. 

      (a) and (c)

    • C. 

      Taxation of source of government revenue

    • D. 

      Market failure as a reason for public finance can be attributed to the following:

  • 4. 
    Empirical definitions of money is associated with.....
    • A. 

      Irvin Fisher

    • B. 

      Adam Smith

    • C. 

      Alfred Marshall

    • D. 

      Milton Friedman

  • 5. 
    The quantity theory of money states that......
    • A. 

      MT=Pr

    • B. 

      MT=Pr

    • C. 

      M=VT/P

    • D. 

      MV=PT

  • 6. 
    Type question here
    • A. 

      Answer option 1

    • B. 

      Answer option 2

    • C. 

      Answer option 3

    • D. 

      Answer option 4

  • 7. 
    The =N= 1,500 which Albert would have used to purchase a BHM 101 course material was used to buy a pair of shoe.This implies that
    • A. 

      Albert's opportunity cost is the BHM 101 course material

    • B. 

      Albert's opportunity cost is the pair of shoes he bought

    • C. 

      Albert's real cost is =N= 1,500

    • D. 

      Albert's money cost is also the real cost

  • 8. 
    The demand for commodity Q can be described as completely price inelastic if:
    • A. 

      A rise in the price of commodity P has no effect on the quantity of Q demanded

    • B. 

      A rise in the price of Q has no effect on the quantity of Q demanded

    • C. 

      A fall in the price of Q leads to a proportionate increase in the quantity of Q demanded

    • D. 

      A rise in the price of Q leads to a more proportionate decrease in the quantity of Q demanded

  • 9. 
    Of the three goods, X is a substitute for, and Y complementary to, the third goods Z. A rise in the price of Z following an increase in the cost of production will cause the demand for:
    • A. 

      X and Z to fall

    • B. 

      Y and Z to fall and leave the demand for X unaffected

    • C. 

      X to rise and Y to fall

    • D. 

      All three goods to fall

  • 10. 
    The break-even output for a firm is that at which:
    • A. 

      Average cost = marginal revenue

    • B. 

      Average cost = average revenue

    • C. 

      Marginal cost = marginal revenue

    • D. 

      Marginal cost = average revenue

  • 11. 
    Which of the following describes the possible pricing pattern of firms in perfect competition?
    • A. 

      Some firms may sell at a higher price than minimum average cost in the short run

    • B. 

      Each firm charges a different price to allow for different transport costs

    • C. 

      Some firms may charge less than minimum average cost in the long run

    • D. 

      Each firm charges a different price to allow for differences in fixed costs

  • 12. 
    When marginal costs are below average cost at a given output, one can deduce that, if output increases:
    • A. 

      The firm is at optimum size

    • B. 

      Variable costs will fall

    • C. 

      Average costs will fall

    • D. 

      Marginal costs will fall

  • 13. 
    In the short-run under the keynesian macroeconomics.....
    • A. 

      MPC is greater than APC

    • B. 

      MPC is less than APC

    • C. 

      APC is equal to MPC

    • D. 

      APC is less than MPC

  • 14. 
    Which of the following will ensure efficiency in the industrial sector of your county, Nigeria
    • A. 

      Privatization

    • B. 

      Liquidation

    • C. 

      Indigenization

    • D. 

      Nationalization

  • 15. 
    Government revenue from the groundnut industry is from
    • A. 

      Rents

    • B. 

      Taxes

    • C. 

      Licenses

    • D. 

      Royalties

  • 16. 
    Which of the following is a reason why government levy tax
    • A. 

      All of the above

    • B. 

      To redistribute income

    • C. 

      To check inflation

    • D. 

      To encourage even development

  • 17. 
    Which of these factors influences the location of an industry?
    • A. 

      Power supplies

    • B. 

      Labour supply

    • C. 

      Raw materials

    • D. 

      All of the above

  • 18. 
    Economics can be best defined as the study of....
    • A. 

      Why resources are scarce

    • B. 

      How to find minimum cost of production

    • C. 

      How to spend the family income efficiently

    • D. 

      How scarce resources can be used efficiently

  • 19. 
    ''Localization of industries''means
    • A. 

      The industrialization of a Country

    • B. 

      The location of industry in any state in Nigeria

    • C. 

      The concentration of industries in one locality

    • D. 

      All of the above

  • 20. 
    All the followings are specific examples of indirect tax except
    • A. 

      Poll tax

    • B. 

      Purchase tax

    • C. 

      Excise duty

    • D. 

      Export duty

  • 21. 
    Type question here
    • A. 

      Answer option 1

    • B. 

      Answer option 2

    • C. 

      Answer option 3

    • D. 

      Answer option 4