Quiz on Economics Concepts

What does microeconomics focus on?

• Individual markets and decisions

• National income

• Global trade patterns

• Aggregate demand

Which of the following is an example of macroeconomic analysis?

• Consumer choice for a product

• A firm’s pricing strategy

• National unemployment rate

• Production cost of a factory

Prescriptive actions in economics involve:

• Describing economic phenomena

• Recommending solutions to problems

• Identifying causes of issues

• Studying past economic trends

Which field combines psychology and economics?

• Classical economics

• Behavioral economics

• Development economics

• Environmental economics

What is an assumption in economics?

• Observed behavior pattern

• Proven law of behavior

• Simplification to analyze behavior

• Random guesswork

The study of resource allocation focuses on:

• Distributing limited resources effectively

• Determining government policies

• Increasing national savings

• Enhancing global trade

Analyzing how a household spends its income is an example of:

• Interdisciplinary analysis

• Resource allocation

• Microeconomics

• Macroeconomics

Which policy is an example of a prescriptive action?

• Observing inflation trends

• Suggesting tax reduction to boost demand

• Measuring consumer spending

• Calculating GDP growth

Interdisciplinary approaches in economics are necessary for:

• Ignoring non-economic factors

• Focusing only on monetary issues

• Maximizing profits exclusively

• Understanding complex problems holistically

In economics, the assumption of 'rational behavior' means:

• Decisions are made to maximize utility

• Actions are based on instinct

• Preferences are irrelevant

• People always act in predictable ways