Economics Quiz

Microeconomics focuses on individual economic units such as households and firms.

• True

• False

Macroeconomics studies the overall economy and its components.

• True

• False

Who is John Maynard Keynes?

• A philosopher known for his ideas on ethics

• A mathematician known for his work in geometry

• An economist known for his theories on government intervention

• A psychologist known for his theories on human behavior

What is Keynesian economics?

• An economic theory that emphasizes individualism

• An economic theory that promotes socialism

• An economic theory that supports free market capitalism

• An economic theory that advocates for government intervention

The physical objects that are tangible and someone buys are known as

• Presents

• All answers are correct

• Goods

• Services

What is supply and demand?

• The relationship between the quantity of a good and its price

• The amount of goods available in the market

• The total number of consumers in the market

• The financial cost of producing a good

The intangible actions or activities that one person performs for another are known as

• Services

• Gifts

• None

• Goods

People who buy goods and services are

• Consumers

• Sellers

• Producers

• Citizens

What does scarcity refer to in economics?

• Limited resources

• Excessive production

• Unlimited wants

• High demand

No matter how well planned, every decision has:

• Scarcity

• Incentives

• Unintended consequences

• Elasticity