Economics Quiz

Which of the following is one of the major causes of economic problems?

• Unlimited human wants

• Alternative usage of resources

• Scarcity of economic resources

• All of the above

Which of the following statements is the actual meaning of scarcity?

• There is an increase in the resources

• There is a shortage in the resources

• There is no change in the resources

• None of the above

The branch of economics that deals with the allocation of resources is ______.

• Econometrics

• Managerial economics

• Microeconomics

• None of the above

Which of the following is a microeconomic topic?

• The reasons for a decline in average prices

• The reasons why Kathy buys less orange juice

• The cause of why total employment may decrease

• The effect of the government budget deficit on inflation

Studying the determination of prices in individual markets is primarily a concern of

• Negative economics

• Microeconomics

• Positive economics

• Macroeconomics

When China builds a dam using few machines and a great deal of labor, it is answering the ________ question.

• "How"

• "What"

• "Where"

• "For whom"

Entrepreneurs do all of the following EXCEPT

• Bear risk from business decisions

• Own all the other resources

• Come up with new ideas about what, how, when and where to produce

• Organize labor, land, and capital

Which of the following is NOT a factor of production?

• The water used to cool a nuclear power plant

• The wages paid to workers

• The effort of farmers raising cattle

• The management skill of a small business owner

When a university decides to add to the football stadium instead of adding to the baseball stadium, it faces the

• "What" tradeoff

• "How" tradeoff

• Macroeconomic question

• "For whom" tradeoff

The loss of the highest-valued alternative defines the concept of

• Entrepreneurship

• Scarcity

• Marginal benefit

• Opportunity cost