Sample Quiz Economics
Sample Quiz Economics
Sample Quiz Economics
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.
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
A) Allocation
B) Consumption
C) Scarcity
D) Money
6. The quantity demanded of a product rises whenever
7. The circular flow of goods and incomes shows the relationship between:
8. Which of the following is NOT included in the decisions that every society must make?
12. If marginal benefits is greater than marginal cost, a rational choice involves
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) Land
B) A bank loan
C) Labor
D) Capital
16. An increase in money incomes will:
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
20. The quantity demanded of Pepsi has decreased. The best explanation for this is that
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
28. If we say that the variables are inversely related, this means that:
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
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
40. Quantity demand is a specific quantity that buyers are willing and able to buy at a specific
demand price.
A) True
B) False