Economic Concepts and Market Failures Quiz
Test your knowledge with questions on scarcity, perfect competition, externalities, GDP, moral hazard & more!
#1
What is the basic economic problem that arises due to scarcity?
Unlimited resources
Unlimited wants
Unlimited production
Unlimited consumption
#2
What is the opportunity cost of a decision?
The monetary cost involved
The next best alternative forgone
The total cost of production
The fixed cost of the decision
#3
In macroeconomics, what does GDP stand for?
Gross Domestic Price
Gross Domestic Product
Goods and Demand Profile
Government Development Plan
#4
Which of the following is a characteristic of a perfectly competitive market?
Few buyers and sellers
Product differentiation
Barriers to entry
Price taker behavior
#5
What is the economic concept that refers to the additional satisfaction or utility gained from consuming one more unit of a good or service?
Diminishing marginal utility
Total utility
Marginal cost
Opportunity cost
#6
Which of the following is a characteristic of a public good?
Excludability
Rivalry
Non-excludability
High rivalry
#7
In economics, what does the term 'externality' refer to?
The difference between total revenue and total cost
A side effect of an economic activity affecting third parties
The amount by which quantity demanded exceeds quantity supplied
The rate at which one good can be exchanged for another
#8
What is the Phillips Curve used to illustrate in economics?
The relationship between inflation and unemployment
The impact of fiscal policy on aggregate demand
The behavior of consumers in the market
The trade-off between imports and exports
#9
Which economic concept is illustrated by the production possibilities frontier (PPF) curve?
Scarcity
Opportunity cost
Marginal utility
Elasticity
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Microeconomics
Popular Quizzes in Economics
Report