Economic Analysis and Resource Allocation Quiz

Test your knowledge on opportunity cost, GDP, demand, market structures, tax systems, central banks, and more.

Practice Learn Test

What is opportunity cost?

The cost of an opportunity

The cost of production

The value of the next best alternative foregone

The cost of raw materials

What does GDP stand for?

Gross Domestic Product

Gross Domestic Profit

Global Development Process

General Demand Principle

What is the concept of 'opportunity cost'?

The cost of an opportunity

The value of the next best alternative foregone

The monetary cost of an action

The total cost of production

What is the difference between a monopoly and an oligopoly?

In a monopoly, there is only one seller, while in an oligopoly, there are few sellers.

In a monopoly, there are few sellers, while in an oligopoly, there is only one seller.

Both have only one seller.

Both have few sellers.

In microeconomics, what does 'demand' refer to?

The quantity of goods and services producers are willing to supply at a given price

The quantity of goods and services consumers are willing and able to purchase at a given price

The quantity of goods and services demanded by the government

The quantity of goods and services demanded by foreign countries

Which of the following is not a characteristic of a perfectly competitive market?

Many buyers and sellers

Homogeneous products

Barriers to entry and exit

Perfect information

What is the formula for calculating price elasticity of demand?

Percentage change in quantity demanded divided by percentage change in price

Percentage change in price divided by percentage change in quantity demanded

Change in quantity demanded divided by change in price

Change in price divided by change in quantity demanded

What is the difference between a progressive tax system and a regressive tax system?

In a progressive tax system, higher income individuals pay a higher percentage of their income in taxes, while in a regressive tax system, lower income individuals pay a higher percentage.

In a progressive tax system, lower income individuals pay a higher percentage of their income in taxes, while in a regressive tax system, higher income individuals pay a higher percentage.

Both tax systems tax everyone at the same rate.

There is no difference between the two tax systems.

What does the term 'elasticity of supply' measure?

The responsiveness of quantity demanded to a change in price

The responsiveness of quantity supplied to a change in price

The responsiveness of price to a change in quantity demanded

The responsiveness of price to a change in quantity supplied

#10

What is the formula for calculating total revenue?

Price multiplied by quantity sold

Quantity sold divided by price

Price minus cost

Quantity sold multiplied by cost

#11

What is the concept of 'marginal utility' in economics?

The additional satisfaction gained from consuming one more unit of a good or service

The total satisfaction gained from consuming all available units of a good or service

The total cost of producing one more unit of a good or service

The additional cost incurred from producing one more unit of a good or service

#12

What is the main function of central banks in a country's economy?

To control the government's spending

To regulate the stock market

To control the money supply and interest rates

To set prices for goods and services

#13

What is the significance of the Phillips curve in macroeconomics?

It shows the relationship between inflation and unemployment.

It demonstrates the relationship between interest rates and investment.

It explains the impact of government spending on economic growth.

It illustrates the relationship between taxes and consumer spending.

#14

What is the main function of the World Bank?

To provide financial assistance and policy advice to developing countries

To regulate international trade

To facilitate currency exchange

To manage global monetary policy

#15

What is 'perfect competition' in economics?

A market structure with many buyers and sellers, homogeneous products, and no barriers to entry or exit

A market structure with only one seller and many buyers

A market structure with only a few sellers and many buyers

A market structure with barriers to entry and exit

#16

What is the difference between 'explicit costs' and 'implicit costs'?

Explicit costs are monetary payments for inputs, while implicit costs are opportunity costs of using self-owned resources.

Explicit costs are opportunity costs of using self-owned resources, while implicit costs are monetary payments for inputs.

Both terms refer to the same concept.

Neither term is relevant in economics.