Economics Quiz

What does economics study?

• Political structures

• Scarce resources and their management

• Environmental science

• Historical events

What is scarcity in economics?

• Overproduction of goods

• Unlimited resources for limited needs

• Demand exceeding available goods and services

• Equilibrium in supply and demand

Which of the following is a factor of production?

• Innovation

• Geography

• Capital

• Tradition

In a market economic system, who owns the resources?

• Government

• Private entities

• Non-profit organizations

• The global community

What is opportunity cost?

• A benefit from making a decision

• The process of giving up one alternative for another

• The cost of producing goods

• Trade between countries

What is a trade-off?

• Exchanging goods in a market

• Balancing wants and needs

• Maximizing profit

• Controlling inflation

What is the primary focus of microeconomics?

• Inflation rates

• Consumer and supplier decisions

• National GDP

• International trade

Which economic system answers all three economic questions using both government and private entities?

• Market economic system

• Command economic system

• Mixed economic system

• Feudal economic system

What does rationality assume in economics?

• Random decision-making

• Logical and consistent decision-making

• Unpredictable human behavior

• Decisions based purely on emotions

What is the focus of positive economics?

• Evaluation of outcomes

• Analysis of existing conditions

• Ethical judgments

• Political implications