Economics Quiz

What is the basic economic problem?

• Unlimited resources and limited wants

• Unlimited wants and limited resources

• Abundance of resources and unlimited wants

• Limited wants and unlimited resources

Which of the following is an economic good?

• Air

• Water

• Food

• Sunlight

What are the factors of production?

• Land, Labor, Capital, Enterprise

• Money, Goods, Services, Technology

• Supply, Demand, Price, Profit

• Consumers, Producers, Government, Market

What is the reward for land as a factor of production?

• Rent

• Wages

• Interest

• Profits

What is geographical mobility?

• The willingness and ability to relocate for employment purposes

• The ease with which a person can change between jobs

• The degree of mobility while changing from one production area to another

• The mobility of factors within an economy

What is occupational mobility?

• The willingness and ability to relocate for employment purposes

• The ease with which a person can change between jobs

• The degree of mobility while changing from one production area to another

• The mobility of factors within an economy

What is opportunity cost?

• The cost of the next best alternative

• The cost of the current choice

• The cost of all alternatives combined

• The cost of the least desirable alternative

What does a production possibility curve (PPC) represent?

• The maximum combinations of goods and services that can be produced with unlimited resources

• The maximum combinations of goods and services that can be produced with limited resources

• The minimum combinations of goods and services that can be produced with unlimited resources

• The minimum combinations of goods and services that can be produced with limited resources

What causes a movement along the PPC?

• Changes in non-price factors

• Changes in price of the good or service

• Changes in consumer income

• Changes in government policies

What is demand?

• The willingness and ability of customers to buy a good or service at a given price level

• The willingness and ability of producers to sell a good or service at a given price level

• The quantity of a good or service that customers are willing to buy at a given price

• The quantity of a good or service that producers are willing to sell at a given price