Crash Course Economics Quiz 1

What is economics primarily concerned with?

• The study of the stock market

• The study of people and choices

• Forecasting market trends

• The study of money

What did Alfred Marsh define economics as?

• The science of money management

• The study of wealth

• A study of man and woman in the ordinary business of life

• The analysis of stock markets

What does the concept of opportunity cost refer to?

• The financial cost of an opportunity

• The cost of missing out on an opportunity

• The cost of the next best alternative

• The cost of taking an opportunity

What is an example of a real-world application of economics?

• Calculating the GDP of a country

• Investing in the stock market

• Predicting the next stock market crash

• Deciding whether to work or go to college

What illustrates the concept of scarcity in economics?

• The unlimited supply of consumer goods

• The abundance of natural resources

• The efficiency of market economies

• Unlimited wants but limited resources

What is the opportunity cost of watching a Crash Course Economics video?

• The time spent watching another video

• There is no opportunity cost

• The electricity used to power the device

• The cost of a Netflix subscription

Which of the following is an example of weighing benefits and costs?

• All of the above

• Deciding to walk to the gym

• Choosing between watching a video or studying

• Crushing all cars to prevent traffic fatalities

What does military spending illustrate in economics?

• The concept of opportunity cost

• The benefits of a strong military

• The effectiveness of government spending

• The importance of national security

How can incentives impact public policy outcomes?

• By promoting private sector growth

• By increasing taxes

• By reducing government spending

• By encouraging desired behaviors

What is a perverse incentive?

• A punishment for undesirable behavior

• A financial reward for achieving a goal

• An incentive that has an unintended and undesirable result

• An incentive that encourages positive behavior