Introduction to Economics Quiz

What does the study of economics primarily focus on?

• How to maximize profits in businesses

• How to allocate scarce resources to satisfy unlimited wants

• How to invest in the stock market

• How to save money for future use

What is the meaning of scarcity in economics?

• A situation where resources are unlimited

• A lack of demand for products

• Resources are limited, but human wants are unlimited

• Excess supply of goods

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Technology

What are the two main branches of economics?

• Macroeconomics and Microeconomics

• Supply and Demand

• Accounting and Finance

• Business and Management

What does microeconomics study?

• The behavior of governments and large institutions

• The behavior of individuals and small businesses

• Global economic policies

• National income and output

What is the definition of opportunity cost?

• The money spent on goods and services

• The value of the next best alternative given up

• The resources used to produce a good

• The price paid for an item

Which of the following best describes a trade-off?

• Choosing one option and giving up another

• Making a decision without alternatives

• Paying money to get a product

• Allocating resources for future use

Which of the following is an example of a scarce resource?

• Freshwater

• Unlimited solar energy

• Air in a clean environment

• Used batteries

What does utility refer to in economics?

• A bill for services like electricity and water

• Satisfaction or benefit from consuming goods or services

• The value of money

• Costs associated with production

What is the primary goal of economics?

• To maximize profits in businesses

• To analyze how people make choices with limited resources

• To study international trade

• To solve global poverty