Economic Principles in Production and Trade Quiz

Test your knowledge with questions on law of demand, GDP, opportunity cost, monopolies, fiscal policy, supply & more.

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What is the law of demand?

As the price increases, quantity demanded decreases

As the price decreases, quantity demanded increases

Price and quantity demanded are not related

Quantity demanded remains constant regardless of price changes

What does GDP stand for in economics?

Gross Domestic Price

Gross Domestic Product

Global Demand Parameter

General Demand and Price

What is the difference between microeconomics and macroeconomics?

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

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

There is no difference between microeconomics and macroeconomics

Microeconomics focuses on international trade, while macroeconomics focuses on domestic markets

What is a monopoly?

A market with many buyers and sellers

A market with only one buyer and one seller

A market with only one seller and many buyers

A market with few buyers and many sellers

What is the opportunity cost?

The cost of an opportunity

The benefit of an opportunity

The value of the next best alternative

The value of the chosen alternative

What is the law of diminishing returns?

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

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

As more units of a variable input are added to fixed inputs, the marginal product of the variable input increases indefinitely

As more units of a variable input are added to fixed inputs, the marginal product of the variable input becomes negative

What is price elasticity of demand?

The percentage change in quantity demanded divided by the percentage change in price

The percentage change in price divided by the percentage change in quantity demanded

The absolute change in quantity demanded divided by the absolute change in price

The absolute change in price divided by the absolute change in quantity demanded

What is fiscal policy?

The control of the money supply by a central bank

The use of government spending and taxation to influence the economy

The regulation of trade between countries

The setting of interest rates by the government

What is comparative advantage in international trade?

A country can produce a good with lower opportunity cost than another country

A country can produce a good with higher opportunity cost than another country

A country can produce all goods with the same opportunity cost as another country

A country can produce goods without considering opportunity cost

Economic Principles in Production and Trade Quiz

What is the law of demand?

What does GDP stand for in economics?

What is the difference between microeconomics and macroeconomics?

What is a monopoly?

What is the opportunity cost?

What is the law of diminishing returns?

What is price elasticity of demand?

What is fiscal policy?

What is comparative advantage in international trade?

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