Economic Principles in Resource Markets Quiz

Explore economic principles in resource markets with this quiz. Test yourself on elasticity, market structures, opportunity cost, and more!

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

Many buyers and sellers

Product differentiation

Barriers to entry

Price setting power for individual firms

Which of the following is NOT a factor of production?

Labor

Land

Money

Capital

What does the term 'opportunity cost' represent in economics?

The total cost of producing a good or service

The cost of forgoing the next best alternative when making a decision

The fixed cost of production

The cost of government intervention in the market

In a production possibilities curve (PPC), what does a point inside the curve indicate?

Underutilization of resources

Unattainable production levels

Optimal resource allocation

Expansion of production possibilities

What is the law of demand in economics?

As the price of a good or service increases, the quantity demanded decreases, ceteris paribus

As the price of a good or service increases, the quantity demanded increases, ceteris paribus

As the price of a good or service decreases, the quantity supplied decreases, ceteris paribus

As the price of a good or service decreases, the quantity demanded decreases, ceteris paribus

In economics, what does the term 'elasticity' refer to?

The responsiveness of quantity demanded to a change in price

The total revenue earned by a firm

The cost of production

The level of government intervention in the market

Which of the following statements is true regarding the law of diminishing marginal returns?

As output increases, marginal cost decreases

As input increases, total output increases at an increasing rate

As more of a variable input is added to fixed inputs, marginal product eventually declines

All inputs are variable in the long run

What is the primary function of a resource market?

To determine the distribution of income

To regulate the prices of goods and services

To facilitate the exchange of resources, such as labor and capital, between households and firms

To promote economic growth

Which of the following is a characteristic of a monopoly market structure?

Many sellers offering identical products

Easy entry and exit for firms

Single seller with significant market power

Perfect information available to buyers and sellers

#10

What is the 'invisible hand' concept in economics associated with?

Government intervention in the market

Centralized planning of the economy

Self-interested individuals unintentionally promoting the public good through their actions

Regulation of international trade

Economic Principles in Resource Markets Quiz

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

Which of the following is NOT a factor of production?

What does the term 'opportunity cost' represent in economics?

In a production possibilities curve (PPC), what does a point inside the curve indicate?

What is the law of demand in economics?

In economics, what does the term 'elasticity' refer to?

Which of the following statements is true regarding the law of diminishing marginal returns?

What is the primary function of a resource market?

Which of the following is a characteristic of a monopoly market structure?

What is the 'invisible hand' concept in economics associated with?

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