Sample Quiz Economics

QUIZ (Man-Econ)
1. Which of the following will cause a change in quantity supplied?
A) Technological change
B) Change in input prices
C) A change in the market of thee good.
D) A change in the number of firms in the market.
2. The four factors of production are.
A) Land, labor, capital, and money

B) Land, labor, capital and entrepreneurial ability
C) Labor, capital, entrepreneurial ability, and money
3. If the price of crackers goes up when the price of cheese goes down, crackers and cheese are
A) Inferior goods
B) Substitutes
C) Both substitutes and compliments
D) Compliments
4. The location of the supply curve of a product depends on:
A) The technology used to produce the product

B) The price of resources used in its production
C) The number of sellers in the market
D) All of the above
5. In economics the central problem is
A) Allocation
B) Consumption
C) Scarcity
D) Money
6. The quantity demanded of a product rises whenever
A) The product’s price falls

B) Income increases
C) Population increases
D) The prices of substitute goods rise
7. The circular flow of goods and incomes shows the relationship between:
A) Income and money

B) Wages and salaries
C) Goods and services
D) Firms and households
8. Which of the following is NOT included in the decisions that every society must make?
A) What goods will be produced?

B) Who will produce goods?
C) What determines consumer preferences?
D) Who will consume the goods?
9. The ‘law of demand’ implies that
A) As prices fall, quantity demanded increases

B) As prices rise, quantity demanded increases
C) As prices fall, demand increases
D) As prices rise, demand decreases
10. Market equilibrium exists when _____ at the prevailing price.
A) Quantity demanded is less than the quantity supplied

B) Quantity supplied is greater than quantity demanded
C) Quantity demanded equals quantity supplied
D) Quantity demanded is greater than quantity supplied
11. If two goods are compliments
A) They are consumed independently

B) An increase in the price of one will increase the demand of the other
C) A decrease in the price of one will increase the demand of the other
D) They are necessarily inferior goods
12. If marginal benefits is greater than marginal cost, a rational choice involves
A) More of the activity

B) Less of the activity
C) More or less depending on the benefits of the other activities
13. _____ is the analysis of major management decisions using the tools of economics.
A) Macroeconomics
B) Descriptive Economics
C) Empirical Economics
D) Managerial Economics
14. The overall process of decision making in, for example, staff selection includes which of these
stages?
A) Deciding which candidate to appoint

B) Identifying the need for a new member of staff
C) Agreeing the job specification
D) All of the above
15. Indicate below what is NOT a factor of production
A) Land
B) A bank loan
C) Labor
D) Capital
16. An increase in money incomes will:
A) Increase the demand for inferior good

B) Increase the supply of an inferior good
C) Increase the demand for normal good
D) Decrease the supply pf normal good
17. The demand curve will shift to the left for most consumer goods when
A) Incomes decrease
B) The prices of substitutes fall
C) The prices of complements increase
D) All of the above
18. Two explanations for the law of demands are
A) Price and quantity effects

B) Substitution and income effects
C) Opportunity and substitution effects
D) Substitutes and inferior goods
E) None of the above
19. The term, “other things equal” means that
A) The associated statement is normative

B) Many variables affect the variable under consideration
C) A number of relevant variables are assumed to be constant
D) When variable X increases so does related variable Y
20. The quantity demanded of Pepsi has decreased. The best explanation for this is that
A) The price of Pepsi increased

B) Pepsi consumers had an increase in income
C) Pepsi’s advertising is not effective as the past
D) The price of Coca Cola has increased
21. Suppose the demand for good Z goes up when the price of good Y goes down. We can say that
goods Z and Y are
A) Substitutes
B) Compliments
C) Unrelated goods
D) Perfect substitutes
22. When the market operates without interference, price increases will distribute what is
available to those who are willing to pay the most. This process is known as:
A) Price rationing
B) Price fixing
C) Quantity adjustment
D) Quantity setting
23. When the decrease in the price of one good cause the demand for another good to decrease,
the goods are
A) Normal
B) Inferior
C) Substitutes
D) Complements
24. The demand curve for a product might shift as the result of change in:
A) Consumers taste
B) Consumers incomes
C) Prices of related goods
D) All of the above
25. If the price of a complement increases, all else equal

A) Quantity demanded will increase
B) Quantity supplied with increase
C) Demand will increase
D) Demand will decrease
26. Which of the following will NOT cause a shift in the demand curve for compact discs?
A) A change in the price of pre-recorded cassette tapes

B) A change in income
C) A change in the price of compact discs
D) A change in wealth
27. If Z is an inferior good, a decrease in money income will shift the:
A) Supply curve for Z to the left

B) Demand curve for Z to the left
C) Supply curve for Z to the right
D) Demand curve for Z to the right
28. If we say that the variables are inversely related, this means that:
A) The two graph is an upsloping line

B) An increase in one variable is associated with a decrease in the other
C) An increase in the variable is associated with an increase in the other
D) The resulting relationship can be portrayed by a straight line parallel to the horizontal axis
29. Which of the following is a distinguishing feature of a command economy:
A) Private ownership of all capital

B) Central planning
C) Heavy reliance on markets
D) Wide-spread dispersion of economic power
30. The word that comes from the Greek word for “one who manages a household is”
A) Market
B) Consumer
C) Producer
D) Economy
31. When excess demand occurs in an unregulated market, there is a tendency for
A) Quantity supplied to decrease

B) Quantity demanded to increase
C) Price to rise
D) Price to fall
32. An increase in the number of firms selling pizza will cause, ceteris paribus
A) An increase in supply
B) An increase in demand
C) A decrease in quantity demanded
D) A decrease in the quantity supplied
TRUE OR FALSE
33. An increase in the wages of factory worker does not cause a decrease in the supply of
products.
A) True
B) False
34. Land, labor, and money are the three categories of economic resources
A) True
B) False
35. When a good has few substitutes available, quantity demanded is not nearly as responsive to
a change in price.
A) True
B) False
36. If society was richly endowed with both human and natural resources, it would not face the
economic problem.
A) True
B) False
37. A price floor is a legal minimum price.
A) True
B) False
38. He opportunity cost of watching TV is what you could have done instead with your time and
money.
A) True
B) False
39. The demand for a product or a service depends on a host of factors

A) True
B) False
40. Quantity demand is a specific quantity that buyers are willing and able to buy at a specific
demand price.
A) True
B) False

Sample Quiz Economics

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QUIZ (Man-Econ)

1. Which of the following will cause a change in quantity supplied?

2. The four factors of production are.

A) Land, labor, capital, and money

4. The location of the supply curve of a product depends on:

A) The technology used to produce the product

5. In economics the central problem is

A) The product’s price falls

A) Income and money

A) What goods will be produced?

9. The ‘law of demand’ implies that

A) As prices fall, quantity demanded increases

10. Market equilibrium exists when _____ at the prevailing price.

A) Quantity demanded is less than the quantity supplied

A) They are consumed independently

A) More of the activity

A) Deciding which candidate to appoint

15. Indicate below what is NOT a factor of production

A) Increase the demand for inferior good

18. Two explanations for the law of demands are

A) Price and quantity effects

19. The term, “other things equal” means that

A) The associated statement is normative

A) The price of Pepsi increased

25. If the price of a complement increases, all else equal

A) A change in the price of pre-recorded cassette tapes

27. If Z is an inferior good, a decrease in money income will shift the:

A) Supply curve for Z to the left

A) The two graph is an upsloping line

29. Which of the following is a distinguishing feature of a command economy:

A) Private ownership of all capital

A) Quantity supplied to decrease

39. The demand for a product or a service depends on a host of factors

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