Economics - Recap

What is the fundamental economic problem?

• Scarcity

• Inflation

• Unemployment

• Economic growth

Which of the following is a macroeconomic variable?

• Price of a specific brand of shoes

• GDP

• Quantity of milk consumed by a household

• Price elasticity of demand for oranges

The study of how households and firms make decisions and how they interact in markets is called:

• Macroeconomics

• Microeconomics

• Econometrics

• International economics

Which of the following best describes the law of demand?

• As prices decrease, quantity demanded decreases

• As prices increase, quantity demanded decreases

• As prices decrease, quantity demanded increases

• As prices increase, quantity demanded increases

When the price of a good decreases, what happens to its demand curve?

• Shifts to the left

• Shifts to the right

• Becomes steeper

• Becomes flatter

Which of the following is a determinant of supply?

• Consumer preferences

• Income

• Technology

• Price of related goods

In a market economy, prices are primarily determined by:

• Government regulations

• Central planners

• Supply and demand

• Consumer preferences

What does the term "opportunity cost" refer to?

• The cost of producing one more unit of a good

• The cost of the resources used to produce a good

• The highest-valued alternative that must be sacrificed to choose something else

• The total cost of producing a good

Which of the following is not considered a factor of production?

• Labor

• Money

• Land

• Capital

What is the role of an entrepreneur in the economy?

• Provide labor services

• Allocate resources efficiently

• Bear the risks of organizing resources to produce goods and services

• Determine government policies on economic issues