The Study Of Economics
This short quiz will help you verify whether you have understood the basic rudimentary concepts and definitions of this topic before you engage with the more demanding questions.
- 1.What is Economics all about?
- A.
It studies how firms work
- B.
It is about increasing people's choices and wealth
- C.
It is concerned with efficiency
- D.
It determines at which price goods should be sold
- 2.Resources can also be called ____________________________________
- 3.The Basic Economic Problem is that of:
- A.
Not having enough money
- B.
Shortages of goods eg oil
- C.
Scarcity
- D.
Humans always want more
- 4.The Problem of Scarcity means that there are never enough resources to satisfy human needs and wants.
- A.
True
- B.
False
- 5.Economists describe opportunity cost as the real price of a decision
- A.
True
- B.
False
- 6.How do economicsts calculate opportunity cost?
- 7.An ________________________________ describes the way in which a society organises its scare resources
- 8.One of the main features of the Free Market Economy is the market mechanism
- A.
True
- B.
False
- 9.In a Command Economy the private entrepreneur owns most of the resources
- A.
True
- B.
False
- 10.An Economic good is:
- A.
A public good
- B.
A merit good
- C.
Scarce and desirable
- D.
A free good
- 11.When a non linear function is concave to the origin it is exhibiting:
- A.
Increasing marginal rate of substitution
- B.
Decreasing marginal rate of substitution
- C.
Constatn marginal rate of substitution
- 12.The general equation of a straight line is ________________________________________
- 13.The coordinates (2,3) means that you have a bundle ofthe following
- A.
2x and 3y
- B.
3x and 2 y
- C.
5 x and y
- D.
2x or 3 y
- 14.The function 50x + 80y =40 has:
- A.
An intercept of 5 and a gradient of 8/5
- B.
An intercept of -5 and a gradient of 5/8
- C.
An intercept of 5 and a gradient of -5/8
- D.
An intercept of 40 and a gradient of 8/5
- 15.An efficient allocation of goods refers to a combination of output where it is not possible to increase the output of one good without reducting the output of at least one other good
- A.
True
- B.
False
- 16.The set of all productive allocations is called the Production Possibility Frontier
- A.
True
- B.
False
- 17.Choose the correct ones of the following statements
- A.
An allocatively efficient combination is one where no resources are underutilised
- B.
An allocative efficient combination is one where we also consider factors such as people's preferences and tastes.
- C.
A productively efficient combination is one where you cannot have more of one good without also having more of a second good.
- D.
A productive efficient combination implies that you will only have more of one good if you give up some units of the other good in the bundle
- 18.The most important considertion to make when deciding which goods a firm or country must specialise in is the law of ________________________________
- 19.For trade to take place between two parties which of the following condition must be respected:
- A.
The Selling Price must be higher than the cost to the buyer
- B.
The Selling Price must be higher than the cost to the seller
- C.
The selling price must be higher than the cost to the seller and higher than the cost to the buyer
- D.
The selling price must be higher than the cost to the seller and lower than the cost to the buyer
- 20.When specialisation is done according to the law of comparative advantage and the international price refelcts the domestic opportunity cost of the parties involved, trade will always benefit both parties
- A.
True
- B.
False
Questions: 10 | Attempts: 16215 | Last updated: Jun 15, 2020
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