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Intro to Economics Quiz

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Intro to Economics Quiz

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Fundamentals of economics

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adesola adekoya
adesola adekoya
Nigeria

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Intro to Economics Quiz
 

Intro to Economics QuizOnline version

Fundamentals of economics

by adesola adekoya
1

What does the term scarcity refer to in economics?

2

Which concept represents the next best alternative given up when making a choice?

3

Demand refers to the willingness and ability to purchase at a given what?

4

What is the law of supply?

5

Equilibrium in a market occurs where?

6

Elasticity measures how a variable responds to a change in what?

7

Which factor is considered a basic factor of production?

8

Gross Domestic Product (GDP) measures what?

9

What distinguishes a market economy from a command economy?

10

What is marginal analysis used for in economics?

Feedback

Scarcity means resources are finite, forcing choices. The other options misstate resource abundance or pricing equality.

Opportunity cost is the value of the foregone alternative. Sunk cost is past cost, not relevant to the present choice.

Demand responds to price changes; other options influence demand indirectly but are not the definition.

The law states that, ceteris paribus, higher prices lead to higher quantity supplied.

Equilibrium is where S = D; other statements describe disequilibrium or policy tools.

Price elasticity shows responsiveness of quantity demanded or supplied to price changes.

Labor is a primary factor; others are not traditional factors of production.

GDP sums final output; other options describe other metrics or misinterpret GDP.

In market economies, prices coordinate decisions; the other options describe command economies.

Marginal analysis compares incremental costs and benefits; other options mischaracterize its use.

 
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