Economic Principles and Production Choices Quiz

Test your knowledge with these questions on market structures, laws of economics, and cost concepts in microeconomics.

Practice Learn Test

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

Numerous buyers and sellers

Barriers to entry for new firms

Price setting power for individual firms

Product differentiation

What is the law of demand?

As price increases, quantity demanded increases

As price decreases, quantity demanded decreases

As price increases, quantity demanded decreases

As price decreases, quantity demanded increases

What is the law of supply?

As price increases, quantity supplied decreases

As price decreases, quantity supplied decreases

As price increases, quantity supplied increases

As price decreases, quantity supplied increases

What does the law of diminishing marginal returns state?

As output increases, marginal cost decreases

As more units of a variable input are added to fixed inputs, eventually marginal product decreases

As more units of a variable input are added to fixed inputs, marginal product remains constant

As output increases, marginal revenue increases

What is a characteristic of a monopolistic competition market structure?

Homogeneous products

A single seller dominating the market

Barriers to entry for new firms

Product differentiation

In economics, what is the opportunity cost of a decision?

The explicit cost of the decision

The total cost of the decision

The value of the next best alternative foregone

The marginal cost of the decision

Which of the following is a characteristic of a command economy?

Private ownership of resources

Decentralized decision-making

Centralized planning by the government

Market forces determining prices

Which of the following is a characteristic of a mixed economy?

Centralized planning by the government

Market forces determining all economic decisions

Private ownership of resources alongside government intervention

Decentralized decision-making by individuals

Which of the following is a characteristic of a traditional economy?

Centralized planning by the government

Market forces determining all economic decisions

Economic activities based on custom and tradition

Decentralized decision-making by individuals

Economic Principles and Production Choices Quiz

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

What is the law of demand?

What is the law of supply?

What does the law of diminishing marginal returns state?

What is a characteristic of a monopolistic competition market structure?

In economics, what is the opportunity cost of a decision?

Which of the following is a characteristic of a command economy?

Which of the following is a characteristic of a mixed economy?

Which of the following is a characteristic of a traditional economy?

Quiz Questions with Answers

Test Your Knowledge

Similar Quizzes

Popular Quizzes in Microeconomics

Popular Quizzes in Economics

Other Quizzes to Explore