Fundamentals of Economics Quiz

What is the law of demand?

• As the price of a good increases, the quantity demanded increases.

• As the price of a good increases, the quantity demanded decreases.

• As the price of a good decreases, the quantity demanded decreases.

• As the price of a good decreases, the quantity demanded remains the same.

Tags

DOK Level 1: Recall

Which of the following best describes market equilibrium?

• The point where supply exceeds demand.

• The point where demand exceeds supply.

• The point where supply equals demand.

• The point where prices are highest.

Tags

DOK Level 1: Recall

What does the term "elasticity of demand" refer to?

• The responsiveness of quantity demanded to a change in price.

• The total amount of goods available for sale.

• The difference between supply and demand.

• The cost of producing one more unit of a good.

Tags

DOK Level 1: Recall

What is a defining feature of a centrally planned economy?

• Market forces determine production and pricing.

• All economic activities are regulated by the government.

• Private enterprises drive economic growth.

• Individuals have complete control over their economic choices.

Tags

DOK Level 1: Recall

In a market economy, who determines what goods and services are produced?

• The government.

• Consumers and producers.

• Central planners.

• International organizations.

Tags

DOK Level 1: Recall

What happens to the equilibrium price if there is an increase in demand while supply remains constant?

• The equilibrium price decreases.

• The equilibrium price increases.

• The equilibrium price remains the same.

• The equilibrium price becomes zero.

Tags

DOK Level 1: Recall

If the price elasticity of demand for a product is greater than 1, the demand is considered:

• Inelastic.

• Elastic.

• Unitary elastic.

• Perfectly inelastic.

Tags

DOK Level 1: Recall

Which type of economic system is characterized by private ownership and free markets?

• Command economy.

• Traditional economy.

• Market economy.

• Mixed economy.

Tags

DOK Level 1: Recall

What is the formula for calculating price elasticity of demand?

Tags

DOK Level 1: Recall

Which of the following is an example of a mixed economy?

• North Korea.

• United States.

• Cuba.

• Traditional tribal societies.

Tags

DOK Level 1: Recall