Economics quiz

Which of the following describes the best “What is Economics” ?

• a) Economics is the study that teaches how to minimize expenditures

• b) Economics is the study of the choices people make to cope with scarcity

• c) Economics is the study on how to become best economists

• d) Economics is the study of various economics principles and approaches

“The study of the decisions of people and businesses and the interaction of those decisions in markets. The goal of it is to explain the prices and quantities of individual goods and services”.

• a) Economics

• b) Macroeconomics

• c) Microeconomics

• d) Behavioral Economics

“The study of the national economy and the global economy and the way that economic aggregates grow and fluctuate. The goal of it is to explain average prices and the total employment, income, and production”.

• a) Economics

• b) Macroeconomics

• c) Microeconomics

• d) Behavioral Economics

Economic efficiency - Production costs are as low as possible and consumers are as satisfied as possible with the combination of goods and services that is being produced.

• True

• False

Economic growth - The absence of wide fluctuations in the economic growth rate, the level of employment, and average prices.

• True

• False

Which of the followings are NOT decision makers in economy?

• a) Households

• b) Firms

• c) Students

• d) Governments

Which of the following DOES NOT belong to the functions of the Government?

• a) To provide things - known as public goods - that the market cannot provide for itself;

• b) To internalize externalities or remedy market failures;

• c) To help people who, for a number of reasons, do worse from the market or are more vulnerable to what happens within it than society finds tolerable.

• d) To decide on which price goods and services must be sold

Which of the followings DOES NOT belong to factors to production?

• a) Labor code

• b) Land

• c) Capital

• d) Entrepreneurial ability

_____ is the total of all economic activity in one country, regardless of who owns the productive assets.

_____ is the total of incomes earned by residents of a country, regardless of where the assets are located.