Economics Final Exam Quiz

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  • 1/76 Questions

    What are the four factors of production?

    • Land, capital, money, entrepreneurs
    • Land, capital, labor, entrepreneurs
    • Capital, money, supply, demand
    • Labor, capital, supply, demand
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Economics Quizzes & Trivia
About This Quiz

This is a quiz based off of some very standard economic basics

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  • 2. 

    What is PPF?

    • Possible Production Frontier

    • Production Possibilities Frontier

    • Probable Projection Frontier

    • Projected Possibilities Frontier

    Correct Answer
    A. Production Possibilities Frontier
    Explanation
    The correct answer is Production Possibilities Frontier. The Production Possibilities Frontier (PPF) is a graphical representation of the maximum output combinations that can be produced by an economy, given its resources and technology. It shows the trade-offs between producing different goods or services, indicating the opportunity cost of producing one good over another. The PPF demonstrates the concept of scarcity and helps in understanding the efficiency and potential growth of an economy.

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  • 3. 

    What is Economics?

    • The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources

    • Employment, gross domestic product, inflation, economic growth, and the distribution of income

    • Deals with behavior and decision making by small units, such as individuals and firms

    • A rise in the general level of prices occurs, workers need more money to pay for good clothing and shelter

    Correct Answer
    A. The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources
    Explanation
    Economics is the study of how individuals and societies make choices to allocate scarce resources to satisfy their unlimited wants. It involves analyzing various economic indicators such as employment, GDP, inflation, economic growth, and income distribution. Additionally, economics also deals with understanding the behavior and decision-making processes of individuals and firms. The answer provided captures the essence of economics by emphasizing the concept of trying to satisfy unlimited wants with limited resources.

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  • 4. 

    What are the many payments for the factors of productions called?

    • Land - wages, labor - interest, capital - rent, entrepreneurs - profit

    • Land - rent, labor - wages, capital - interest, entrepreneurs - profit

    • Land - profit, labor - rent, capital - wages, entrepreneurs - interest

    • Land - interest, labor - rent, capital - profit, entrepreneurs - wages

    Correct Answer
    A. Land - rent, labor - wages, capital - interest, entrepreneurs - profit
    Explanation
    The correct answer is Land - rent, labor - wages, capital - interest, entrepreneurs - profit. This answer correctly identifies the payments for the factors of production. Land is associated with rent, labor with wages, capital with interest, and entrepreneurs with profit.

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  • 5. 

    What is opportunity cost?

    • The cost assosiated with any opportunity

    • Giving the cost in order to have the opportunity

    • The cost required in order to succeed

    • Giving something up to have something else

    Correct Answer
    A. Giving something up to have something else
    Explanation
    Opportunity cost refers to the concept of giving up or sacrificing one option in order to pursue or obtain another option. It involves evaluating the potential benefits or gains of choosing one alternative over another, while considering the potential losses or foregone benefits of not choosing the alternative. In other words, it is the cost or value of the next best alternative that is forgone when a decision is made.

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  • 6. 

    Definition of Entrepreneur?

    • A risk taker in search of profits who's initila investment must be returned

    • A investor in search of profits who does something new with existing resources

    • A investor in search of profits who's initial investment must be returned

    • A risk taker in search of profits who does something new with existing resources

    Correct Answer
    A. A risk taker in search of profits who does something new with existing resources
    Explanation
    The correct answer is "A risk taker in search of profits who does something new with existing resources." This answer accurately defines an entrepreneur as someone who takes risks and seeks profits by introducing innovative ideas or methods using the resources they already have. Entrepreneurs are known for their ability to identify opportunities, take calculated risks, and create value by introducing new products, services, or processes to the market. They often utilize their existing resources in a creative and innovative way to achieve their goals and generate profits.

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  • 7. 

    What is the law of supply?

    • The principle that suppliers will normally offer less for sale at high prices and more at lower prices

    • The principle that suppliers will normally offer more for sale at high prices and less at lower prices

    Correct Answer
    A. The principle that suppliers will normally offer more for sale at high prices and less at lower prices
    Explanation
    The law of supply states that suppliers will generally be willing to offer more of a good or service for sale at higher prices, and less at lower prices. This is because higher prices incentivize suppliers to produce and sell more in order to maximize their profits. On the other hand, lower prices may not provide enough incentive for suppliers to produce and sell as much, as it may not be as profitable. Therefore, the correct answer is "The principle that suppliers will normally offer more for sale at high prices and less at lower prices."

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  • 8. 

    What is macroeconomics?

    • The branch of economics that deals with the monetary value

    • The area of economics that deals with behavior and decision making by small units

    • The branch of economics that deals with the economy as a whole

    • The are of economics that deals with the behavior and decision making of your personal life

    Correct Answer
    A. The branch of economics that deals with the economy as a whole
    Explanation
    Macroeconomics is the branch of economics that focuses on the economy as a whole. It examines aggregate economic indicators such as GDP, inflation, and unemployment to understand and analyze the overall performance and behavior of an economy. Macroeconomics looks at factors that influence the economy on a large scale, such as government policies, international trade, and monetary policy. It aims to study and explain the fluctuations and trends in economic activity at the national and global levels.

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  • 9. 

    What are the three basic economic questions?

    • What, where, whom

    • What, how, whom

    • How, whom, when

    • What, why, whom

    Correct Answer
    A. What, how, whom
    Explanation
    The three basic economic questions are "what to produce", "how to produce", and "for whom to produce". These questions address the fundamental choices that societies and individuals face when allocating resources and determining the production and distribution of goods and services. "What to produce" refers to the selection of goods and services to be produced based on consumer demand and resource availability. "How to produce" pertains to the methods and techniques used in the production process, considering factors such as efficiency and cost-effectiveness. "For whom to produce" involves the distribution of goods and services among different individuals and groups in society, taking into account factors like income and need.

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  • 10. 

    What is equilibrium?

    • A situation in which prices are very unstable

    • A situation in which prices are very unreliable

    • A situation in which prices are relatively stable

    • A situation in which prices always fluctuate

    Correct Answer
    A. A situation in which prices are relatively stable
    Explanation
    Equilibrium refers to a state where prices are relatively stable. In this situation, there is a balance between the demand and supply of goods or services, resulting in a stable price level. This means that there is no significant upward or downward pressure on prices, and they remain relatively constant over time.

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  • 11. 

    Definition of Labor?

    • People with all of the efforts, abilities, and skills

    • The people who are for hire for work

    • People with all of the workmanship, skills, and work

    • The act of performing work at any given time

    Correct Answer
    A. People with all of the efforts, abilities, and skills
    Explanation
    The correct answer is "people with all of the efforts, abilities, and skills". This definition of labor encompasses individuals who possess not only the physical ability to work but also the knowledge, expertise, and capabilities required for a particular job or task. It emphasizes that labor involves the combination of effort, skills, and abilities to perform work effectively.

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  • 12. 

    Name the types of businesses

    • Proprietorship, corporation, industrial

    • Partnership, industrial, commercial

    • Corporation, proprietorship, commercial

    • Proprietorship, partnership, corporation

    Correct Answer
    A. Proprietorship, partnership, corporation
    Explanation
    The correct answer is Proprietorship, partnership, corporation. These are the three main types of businesses. A proprietorship is a business owned and operated by one individual. A partnership is a business owned and operated by two or more individuals. A corporation is a legal entity separate from its owners, with shareholders who own the company. These three types of businesses offer different advantages and disadvantages in terms of ownership, liability, and taxation.

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  • 13. 

    What is Scarcity?

    • Giving something up to have something else

    • Extra cost of producing one additional unit of production

    • The condition that results from society not having enough resources to produce all the things people would like to have

    • A rise in the general level of prices occurs, workers need more money to pay for good clothing and shelter

    Correct Answer
    A. The condition that results from society not having enough resources to produce all the things people would like to have
    Explanation
    Scarcity refers to the condition that arises when society does not have enough resources to fulfill all the desires and needs of its people. It is the result of limited resources and unlimited wants. In this situation, individuals and societies must make choices and trade-offs, giving up one thing in order to obtain something else. Scarcity forces individuals and societies to prioritize and allocate resources efficiently, making it an essential concept in economics.

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  • 14. 

    What causes the demand curve to shift?

    • The increase/decrease in need

    • The increase/decrease in volume

    • The increase/decrease in price

    • The increase/decrease in production

    Correct Answer
    A. The increase/decrease in price
    Explanation
    When the price of a product increases or decreases, it directly affects the demand for that product. When the price increases, the demand decreases as consumers are less willing to pay a higher price for the same product. Conversely, when the price decreases, the demand increases as consumers are more willing to purchase the product at a lower price. Therefore, a change in price causes a shift in the demand curve.

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  • 15. 

    What do the points along the frontier represent?

    • Maximum combination of output if all resources are fully employed

    • Minimum combination of output if all resources are fully employed

    • Maximum combination of input if all resources are fully employed

    • Minimum combination of input if all resources are fully employed

    Correct Answer
    A. Maximum combination of output if all resources are fully employed
    Explanation
    The points along the frontier represent the maximum combination of output that can be achieved if all resources are fully employed. This means that the economy is operating at its full potential and efficiently utilizing all available resources. Any point inside the frontier would indicate an underutilization of resources, while any point outside the frontier would be unattainable given the current level of resources.

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  • 16. 

    What is the law of demand?

    • Rule stating that the quantity demanded of a good or service does not vary with its availability

    • Rule stating that the quantity demanded of a good or service does not vary with its price

    • Rule stating that the quantity demanded of a good or service varies inversely with its availability

    • Rule stating that the quantity demanded of a good or service varies inversely with its price

    Correct Answer
    A. Rule stating that the quantity demanded of a good or service varies inversely with its price
    Explanation
    The law of demand states that as the price of a good or service increases, the quantity demanded by consumers decreases, and vice versa. This means that there is an inverse relationship between price and quantity demanded. When the price is high, consumers are less willing and able to purchase the good or service, resulting in a lower quantity demanded. Conversely, when the price is low, consumers are more willing and able to purchase the good or service, leading to a higher quantity demanded.

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  • 17. 

    Define merger?

    • A combination of two or more buisnesses to form a single firm

    • A combination of three or more buisnesses to form a single firm

    • A combination of four of more buisnesses to form a single firm

    Correct Answer
    A. A combination of two or more buisnesses to form a single firm
    Explanation
    A merger is defined as a combination of two or more businesses to form a single firm. This means that two or more separate companies come together and merge their operations, assets, and resources to create a new entity. The purpose of a merger is to achieve synergy, increase market share, expand product offerings, or gain a competitive advantage. By combining their strengths and eliminating redundancies, the merged firm aims to enhance profitability and efficiency in the marketplace.

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  • 18. 

    Name three types of businesses

    • Traditional, command, market

    • Command, market, competitive

    • Traditional, market, competitive

    • Command, traditional, competitive

    Correct Answer
    A. Traditional, command, market
    Explanation
    The correct answer is Traditional, command, market. Traditional businesses are those that follow long-established practices and customs. Command businesses are controlled and regulated by the government or a central authority. Market businesses operate in a free market system where supply and demand determine prices and production. These three types of businesses represent different approaches to organizing and operating economic activities.

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  • 19. 

    What is a price ceiling?

    • A minimum legal price in order to maintain agreement

    • A maximum legal price in order to maintain agreement

    • A maximum legal price that can be charged for a product

    • A minimum legal price that can be charged for a product

    Correct Answer
    A. A maximum legal price that can be charged for a product
    Explanation
    A price ceiling refers to a maximum legal price that can be charged for a product. This means that the price of the product cannot exceed a certain limit set by the government or regulatory authority. The purpose of a price ceiling is to protect consumers by ensuring that they do not have to pay excessively high prices for essential goods or services. It is often implemented in situations where there is a concern about price gouging or monopolistic practices. By setting a maximum price, the government aims to make the product more affordable and accessible to the general public.

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  • 20. 

    What is inflation?

    • A fall in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter

    • A rise in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter

    • A fall in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter

    • A rise in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter

    Correct Answer
    A. A rise in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter
    Explanation
    Inflation refers to a rise in the general level of prices. When inflation occurs, the cost of goods, clothing, and shelter increases. As a result, workers need more money to afford these essential items.

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  • 21. 

    What is Shortage?

    • A situation in which the quantity demanded is greater than the quantity supplied at a given price

    • A situation in which the quantity demanded is less than the quantity supplied at a given price

    • A situation in which the quantity demanded is not offered by the manufacturer

    • A situation in which the quantity demanded can not meet the supply provided

    Correct Answer
    A. A situation in which the quantity demanded is greater than the quantity supplied at a given price
    Explanation
    Shortage refers to a situation where the quantity demanded exceeds the quantity supplied at a specific price. This means that there is an insufficient supply of a particular good or service to meet the demand from consumers. It often leads to higher prices as suppliers may increase prices in response to the scarcity. Shortages can occur due to various factors such as limited production capacity, unexpected increase in demand, or disruptions in the supply chain. In such situations, consumers may have to wait or compete to obtain the desired product or service.

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  • 22. 

    What is a price floor?

    • Highest legal price that can be paid for a good or service

    • Lowest legal price that can be paid for a good or service

    • Highest legal price that can be charged in order to maintain agreement

    • Lowest legal price that can be charged in order to maintain agreement

    Correct Answer
    A. Lowest legal price that can be paid for a good or service
    Explanation
    A price floor is the lowest legal price that can be paid for a good or service. It is a government-imposed regulation that sets a minimum price that sellers are allowed to charge. This is done in order to protect producers and ensure that they receive a fair income for their products. By setting a price floor, the government aims to prevent prices from falling too low and potentially causing financial difficulties for producers.

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  • 23. 

    What is total cost?

    • Variable plus fixed cost

    • All cost associated with production

    • All cost except for the cost of manufacturing

    • A and b

    Correct Answer
    A. A and b
    Explanation
    The correct answer is "a and b" because total cost includes both variable and fixed costs. Variable costs are expenses that change with the level of production, such as raw materials or labor costs. Fixed costs, on the other hand, are expenses that do not change with the level of production, such as rent or insurance. Therefore, total cost encompasses all costs associated with production, including both variable and fixed costs.

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  • 24. 

    What are marginal costs?

    • Extra cost of pruducing one additional unit of production

    • Additional cost associated with lack of demand

    • Cost above and beyond normal associated costs

    • Cost formed by excess production

    Correct Answer
    A. Extra cost of pruducing one additional unit of production
    Explanation
    Marginal costs refer to the additional cost incurred when producing one more unit of a product. It takes into account the increase in expenses such as materials, labor, and overhead that are directly attributed to the production of that additional unit. This concept helps businesses determine the optimal level of production by comparing the additional revenue generated from selling one more unit with the corresponding increase in costs. By understanding marginal costs, companies can make informed decisions about pricing, production levels, and resource allocation to maximize profitability.

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  • 25. 

    Definition of Capital?

    • The tools, equipment used in the production of goods

    • The machinery, and factories used in the production of goods

    • The tools, and machinery used in the production of goods

    • A and B

    • B and C

    Correct Answer
    A. A and B
    Explanation
    The correct answer is A and B. Capital refers to the tools, equipment, machinery, and factories used in the production of goods. This includes both the physical tools and equipment as well as the infrastructure necessary for production. Therefore, options A and B are both correct as they accurately describe the components that fall under the definition of capital.

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  • 26. 

    What does a point inside the curve on a PPF represent?

    • Production at greater than its minimum potential

    • Production as less than its minimum potential

    • Production at greater than its maximum potential

    • Production as less than its maximum potential

    Correct Answer
    A. Production as less than its maximum potential
    Explanation
    A point inside the curve on a PPF represents production as less than its maximum potential. This means that resources are not being fully utilized and there is room for increased production without sacrificing the production of other goods.

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  • 27. 

    Define paradox of value?

    • Apparent contradiction between the low value of nonessentials and high value of essentials

    • Apparent agreement about the nonessentials being less needed and the essentials being greatly needed

    • Apparent contadiction between the high value of nonessentials and low value of essentials

    • Apparent agreement about the nonessentials being greatly needed and the essetials being less needed

    Correct Answer(s)
    A. Apparent contradiction between the low value of nonessentials and high value of essentials
    A. Apparent contadiction between the high value of nonessentials and low value of essentials
    Explanation
    The paradox of value refers to the apparent contradiction between the low value of nonessentials and the high value of essentials. This means that items that are considered nonessential or less needed tend to have a lower value, while items that are essential or greatly needed have a higher value. Similarly, there is also an apparent contradiction between the high value of nonessentials and the low value of essentials, indicating that sometimes nonessential items can have a higher value than essential items.

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  • 28. 

    What is Surplus?

    • A situation in which the quantity supplied is not met by the manufacturer

    • A situation in which the quantity demanded is greater than the quantity demanded at a given price

    • A situation in which the quantity supplied is less than the quantity demanded at a given price

    • A situation in which the quantity supplied is greater than the quantity demanded at a given price

    Correct Answer
    A. A situation in which the quantity supplied is greater than the quantity demanded at a given price
    Explanation
    Surplus refers to a situation where the quantity supplied exceeds the quantity demanded at a given price. This means that there is an excess supply of a product in the market, leading to a surplus. This can occur when the price of a product is set too high, resulting in fewer consumers willing to purchase it, while producers continue to supply the product at higher quantities. As a result, there is an imbalance between supply and demand, leading to a surplus.

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  • 29. 

    On the PPF how can a nation achieve growth?

    • By having more resources or increased productivity

    • By having an increase in supply and demand

    • By having less resources or declined productivity

    • By having an increase in resources and decrease in productivity

    Correct Answer
    A. By having more resources or increased productivity
    Explanation
    A nation can achieve growth on the PPF by having more resources or increased productivity. When a nation has more resources, it can produce more goods and services, leading to economic growth. Additionally, increased productivity means that the nation can produce more output with the same amount of resources, which also contributes to growth. Both factors allow the nation to operate at a point beyond its initial production possibilities, leading to an expansion of its production capabilities and overall economic growth.

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  • 30. 

    What is inelastic?

    • When a given change in quantity demanded causes a relatively smaller change in price

    • When a given change in price causes a relatively larger change in the quantity demanded

    • When a given change in price causes a relatively smaller change in the quantity demanded

    • When a given change in quantity demanded causes a relatively larger change in price

    Correct Answer
    A. When a given change in price causes a relatively smaller change in the quantity demanded
    Explanation
    When a given change in price causes a relatively smaller change in the quantity demanded, it indicates that the demand for the product is inelastic. This means that consumers are not very responsive to changes in price and are willing to pay a higher price for the product. Inelastic demand typically occurs for essential goods or products with limited substitutes, where consumers have few alternatives and are therefore less sensitive to price changes.

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  • 31. 

    Name the three types of taxes?

    • Proportional, proposed, regressive

    • Regressive, proportional, probable

    • Regressive, retaining, proposed

    • Progressive, proportional, regressive

    Correct Answer
    A. Progressive, proportional, regressive
    Explanation
    The correct answer is Progressive, proportional, regressive. These are the three types of taxes. Progressive taxes are based on the taxpayer's ability to pay, meaning that the tax rate increases as income increases. Proportional taxes, also known as flat taxes, impose the same tax rate on all taxpayers regardless of their income. Regressive taxes, on the other hand, impose a higher tax burden on lower-income individuals compared to higher-income individuals, as the tax rate decreases as income increases.

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  • 32. 

    Definition of Land?

    • Anything from the earth

    • The space we occupy

    • Gifts of nature

    • All of the above

    Correct Answer
    A. Gifts of nature
    Explanation
    The correct answer is "Gifts of nature" because land is considered a gift of nature as it is a natural resource that is not created by humans. It refers to the surface of the earth that includes all natural resources such as soil, water, minerals, and vegetation. Land is an essential factor of production and plays a crucial role in various economic activities and human civilization.

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  • 33. 

    What is the FOMC?

    • Federal Opinion Money Committee

    • Federal Open Minded Committee

    • Federal Open Market Committee

    • Federal Option Money Committee

    Correct Answer
    A. Federal Open Market Committee
    Explanation
    The correct answer is Federal Open Market Committee. The FOMC is a committee within the Federal Reserve System that is responsible for making decisions regarding monetary policy in the United States. It consists of members from the Federal Reserve Board and presidents of regional Federal Reserve Banks. The FOMC meets regularly to discuss economic conditions and determine the appropriate course of action to achieve the Federal Reserve's dual mandate of price stability and maximum employment. They have the power to set interest rates and implement other policies to influence the economy.

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  • 34. 

    What is the SEC?

    • Securities and Exchange Commission

    • Safety and Exemption Committee

    • Security of Environment Commission

    • Safety of Elephant Cocks

    Correct Answer
    A. Securities and Exchange Commission
    Explanation
    The correct answer is Securities and Exchange Commission. The SEC is a government agency in the United States that is responsible for regulating and overseeing the securities industry, including stock exchanges, brokerage firms, and investment advisors. It plays a crucial role in protecting investors, maintaining fair and efficient markets, and facilitating capital formation. The SEC enforces securities laws, requires companies to disclose relevant financial information, and investigates and prosecutes cases of securities fraud.

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  • 35. 

    What causes the increase in supply?

    • The increase/decrease in demand

    • The increase/decrease in production

    • The increase/decrease in volume

    • The increase/decrease in price

    Correct Answer
    A. The increase/decrease in demand
    Explanation
    An increase in demand can cause an increase in supply because when there is a higher demand for a product or service, producers are motivated to increase their production in order to meet the increased demand. This can be done by increasing the quantity produced or expanding production facilities. Conversely, a decrease in demand would lead to a decrease in supply as producers would reduce their production to match the lower demand. Therefore, an increase in demand is a factor that can cause an increase in supply.

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  • 36. 

    What are the three functions of money?

    • Measure of value, store of value, and direction of value

    • Medium of exchange, measure of value, and store or value

    • Measure of value, medium of exchange, and compliance of value

    • Medium of exchange, store of value, direction of value

    Correct Answer
    A. Medium of exchange, measure of value, and store or value
    Explanation
    The three functions of money are medium of exchange, measure of value, and store of value. Money serves as a medium of exchange, allowing individuals to trade goods and services. It also acts as a measure of value, providing a common unit of measurement for the worth of different goods and services. Lastly, money serves as a store of value, allowing individuals to save and accumulate wealth over time.

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  • 37. 

    What is microeconomics?

    • The area of economics that deals with the behavior and decision making by small units

    • The area of economics that deals with the behavior and decision of the whole world

    • The branch of economics that deals with the economy as a whole

    • The branch of economics that deals with the monetary value

    Correct Answer
    A. The area of economics that deals with the behavior and decision making by small units
    Explanation
    Microeconomics is the branch of economics that focuses on the behavior and decision making of individual units, such as households, firms, and industries. It analyzes how these units make choices regarding the allocation of resources and the production and consumption of goods and services. Microeconomics examines factors such as supply and demand, market equilibrium, pricing, and market failures. It provides insights into the functioning of specific markets and helps understand the behavior of economic agents at a smaller scale.

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  • 38. 

    How many district banks?

    • 13

    • 12

    • 22

    • 16

    Correct Answer
    A. 12
    Explanation
    The correct answer is 12. This implies that there are 12 district banks.

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  • 39. 

    What are the characteristics of money?

    • Durability, divisibility, limited availability, countability

    • Divisibility, durability, portability, countability

    • Limited availability, portability, durability, countability

    • Portablility, durability, divisibility, limited availability

    Correct Answer
    A. Portablility, durability, divisibility, limited availability
    Explanation
    Money needs to be portable so that it can be easily carried and exchanged. It also needs to be durable, meaning it can withstand wear and tear over time. Divisibility is important because money should be able to be divided into smaller units for transactions. Lastly, limited availability ensures that money retains its value and is not easily counterfeited or inflated.

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  • 40. 

    What are the 4 stages of a business cycle?

    • Peak, trough, expansion, recovery

    • Recession, peak, trough, expansion

    • Recession, peak, trough, recovery

    • Peak, recession, recovery, expansion

    Correct Answer
    A. Recession, peak, trough, expansion
    Explanation
    The correct answer is "Recession, peak, trough, expansion." The business cycle refers to the fluctuations in economic activity over time. It consists of four stages: recession, which is a period of economic decline; peak, which is the highest point of economic activity; trough, which is the lowest point of economic activity; and expansion, which is a period of economic growth. This sequence accurately represents the typical pattern of the business cycle.

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  • 41. 

    What is variable cost?

    • Cost that varies as output changes

    • Cost that does not vary as output changes

    • Cost that varies as production changes

    • Cost that does not vary as output changes

    Correct Answer
    A. Cost that varies as output changes
    Explanation
    Variable cost refers to the cost that changes in direct proportion to the level of output or production. In other words, as the volume of production increases or decreases, the variable cost also fluctuates accordingly. This cost is directly linked to the quantity of goods or services produced and includes expenses such as raw materials, direct labor, and utilities. Unlike fixed costs that remain constant regardless of production levels, variable costs are flexible and adjust based on the scale of operations.

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  • 42. 

    If prices and revenue move in opposite directions demand is?

    • Increased

    • Decreased

    • Unit elastic

    • Unit inelastic

    Correct Answer
    A. Unit elastic
    Explanation
    If prices and revenue move in opposite directions, it means that as prices increase, revenue decreases, and vice versa. In such a scenario, demand is considered to be unit elastic. This means that the change in price has an equal and proportional effect on the change in quantity demanded. In other words, the percentage change in quantity demanded is equal to the percentage change in price.

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  • 43. 

    What is the FDA?

    • Flooding Damage Association

    • Federal Drug Administration

    • Food and Drug Administration

    • Federal Department of Aviation

    Correct Answer
    A. Food and Drug Administration
    Explanation
    The FDA stands for Food and Drug Administration. This government agency is responsible for protecting public health by ensuring the safety and efficacy of food, drugs, medical devices, cosmetics, and other products. They regulate the manufacturing, labeling, and distribution of these products to ensure that they meet the necessary standards for consumer safety.

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  • 44. 

    Who is Adam Smith?

    • A german economist

    • A sweedish economist

    • A scottish economist

    • A english economist

    Correct Answer
    A. A scottish economist
    Explanation
    Adam Smith is known as a Scottish economist. He is widely regarded as the father of modern economics and his book "The Wealth of Nations" is considered a foundational text in the field. Smith's ideas on free markets, division of labor, and the invisible hand have had a significant impact on economic theory and policy. He was born in Scotland in 1723 and his contributions to economics continue to be influential to this day.

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  • 45. 

    What is a durable good?

    • Any good that lasts three years or more when used on a regular basis

    • Any good that last ten years or more when used on a regular basis

    • Any good that lasts three years or more when not used

    • Any good that lasts ten years or more when not used

    Correct Answer
    A. Any good that lasts three years or more when used on a regular basis
    Explanation
    A durable good is defined as any good that lasts three years or more when used on a regular basis. This means that it is a long-lasting product that can withstand regular use for an extended period of time.

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  • 46. 

    What are the functions of the entrepreneur?

    • They provide the money necessary for the resources of land, labor, and capital

    • They provide the procedures that combines the resources of land, labor, and capital into new products

    • They provide the initiative that combines the resources of land, labor, and capital into new products

    • They provide the drive necessary for the resources of land, labor, and capital

    Correct Answer
    A. They provide the initiative that combines the resources of land, labor, and capital into new products
    Explanation
    The correct answer is "They provide the initiative that combines the resources of land, labor, and capital into new products." This answer accurately describes one of the key functions of an entrepreneur. Initiative refers to the ability to take action, make decisions, and drive the process of combining resources to create new products or services. Entrepreneurs are often the driving force behind innovation and the development of new ideas, and they play a crucial role in bringing together the necessary resources to turn these ideas into reality.

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  • 47. 

    Who is the chairman of the FED?

    • Bob Bernanke

    • Ben Bernanke

    • Big Bird Bernanke

    • Bubba Sparks Bernanke

    Correct Answer
    A. Ben Bernanke
    Explanation
    Ben Bernanke is the correct answer because he served as the chairman of the Federal Reserve System, commonly known as the FED, from 2006 to 2014. During his tenure, Bernanke played a crucial role in steering the U.S. economy through the financial crisis of 2008. He implemented various measures to stabilize the financial system and promote economic growth. Bernanke's expertise and leadership during this challenging period earned him recognition and made him a well-known figure in the field of economics.

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  • 48. 

    What is the civilian labor workforce?

    • Men and women 16 years old and over who are not working or cannot get a job

    • Men and women 18 years old and over who are either working or actively looking for a job

    • Men and women 18 years old and over who are not working or cannot get a job

    • Men and women 16 years old and over who are either working or actively looking for a job

    Correct Answer
    A. Men and women 16 years old and over who are either working or actively looking for a job
    Explanation
    The civilian labor workforce refers to men and women who are 16 years old and over and are either currently employed or actively seeking employment. This includes individuals who are actively looking for job opportunities and those who are already working.

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  • 49. 

    What is a non-durable good?

    • Any good that when used on a regular basis lasts less than ten years

    • Any good that when not used lasts less than three years

    • Any good that when used on a regular basis lasts less than three years

    • Any good that when not used last less than ten years

    Correct Answer
    A. Any good that when used on a regular basis lasts less than three years
    Explanation
    A non-durable good refers to any product that has a relatively short lifespan when used regularly. It does not last for more than three years when used on a regular basis. This means that it is not designed or expected to withstand long-term use or wear and tear. Non-durable goods are typically consumed or worn out quickly, such as perishable items, disposable products, or items with a short lifespan due to frequent use.

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Quiz Review Timeline (Updated): Jan 12, 2024 +

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  • Jan 12, 2024
    Quiz Edited by
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  • Oct 22, 2014
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    Clibuser

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