Economic Analysis and Values Quiz

Test your knowledge on microeconomics with questions on markets, GDP, monetary policy, elasticity, taxes, and more.

Practice Learn Test

Which of the following is a characteristic of a perfectly competitive market?

Many buyers and many sellers

High barriers to entry

Homogeneous products

Complete control over price by firms

What does GDP stand for in economics?

Gross Domestic Profit

Gross Domestic Product

General Demand Patterns

Global Development Protocol

What is the opportunity cost of a decision?

The monetary cost of the decision

The benefit of the decision

The value of the next best alternative that is foregone

The time spent making the decision

What does the term 'inflation' refer to in economics?

A decrease in the general price level of goods and services

An increase in the general price level of goods and services

Stagnation of economic growth

Decrease in the money supply

Which of the following is an example of a public good?

Private healthcare services

Public transportation system

Exclusive club membership

Gourmet restaurant meal

What is fiscal policy?

The government's regulation of the money supply and interest rates to control economic fluctuations.

The government's use of taxation and spending to influence the economy.

The process of buying and selling government securities to control the money supply.

The government's control over imports and exports to maintain economic stability.

What is the primary objective of monetary policy?

Stabilize prices

Maximize government revenue

Promote economic growth

Control government spending

What is the formula to calculate Price Elasticity of Demand?

Percentage change in quantity demanded / Percentage change in price

Percentage change in price / Percentage change in quantity demanded

Total revenue / Quantity demanded

Quantity demanded / Total revenue

What is the difference between microeconomics and macroeconomics?

Microeconomics studies individual markets, while macroeconomics studies the economy as a whole.

Macroeconomics studies individual markets, while microeconomics studies the economy as a whole.

Microeconomics focuses on the behavior of individual consumers, while macroeconomics focuses on the behavior of firms.

Macroeconomics focuses on the behavior of individual consumers, while microeconomics focuses on the behavior of firms.

#10

Which of the following is an example of a regressive tax?

Income tax

Sales tax

Property tax

Corporate tax

#11

What is the law of diminishing marginal utility?

As the price of a good increases, the demand for it decreases.

As the quantity of a good consumed increases, the additional satisfaction derived from each additional unit decreases.

As the price of a good decreases, the demand for it decreases.

As the quantity of a good consumed increases, the additional satisfaction derived from each additional unit increases.

#12

What is the difference between a recession and a depression?

A recession is a prolonged period of economic decline, while a depression is a short-term economic downturn.

A recession is a short-term economic downturn, while a depression is a prolonged period of economic decline.

A recession affects only specific industries, while a depression affects the entire economy.

A depression is caused by external factors, while a recession is caused by internal factors.

#13

Which of the following is an example of a positive externality?

Pollution

Education

Traffic congestion

Noise pollution

#14

What does the term 'ceteris paribus' mean in economics?

All other things being equal

Only one variable changes

Prices are fixed

Demand equals supply

#15

What does the term 'invisible hand' refer to in economics?

The government's intervention in the market

The principle that self-interest guides individuals to promote society's economic well-being

The allocation of resources by central planning authorities

The role of labor unions in negotiating wages