Economic Resources and Expenditure Quiz

Test your knowledge on economic resources, expenditure, and key concepts in microeconomics. Explore scarcity, opportunity cost, GNP, GDP, and more.

#1

Which of the following is considered a scarce economic resource?

Air
Gold
Sunlight
Rainwater
#2

What type of expenditure is the purchase of machinery for a factory?

Consumption expenditure
Investment expenditure
Government expenditure
Revenue expenditure
#3

Which of the following is NOT a factor of production?

Labor
Land
Money
Capital
#4

What type of expenditure is payment for the salaries of government employees?

Consumption expenditure
Investment expenditure
Government expenditure
Revenue expenditure
#5

Which of the following is NOT a characteristic of a capital resource?

Man-made
Used to produce goods and services
Unlimited availability
Enhances productivity
#6

What type of expenditure is the purchase of raw materials by a manufacturing company?

Consumption expenditure
Investment expenditure
Government expenditure
Revenue expenditure
#7

Which of the following is a characteristic of a public good?

Excludability
Rivalry in consumption
Non-excludability
Exhaustibility
#8

What does the term 'opportunity cost' refer to in economics?

The cost of producing one additional unit of a good
The cost of a good or service that is forgone to obtain something else
The cost of labor in production
The cost of capital investment
#9

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

Pollution from a factory
A beekeeper's bees pollinating nearby farms' crops
Noise pollution from a construction site
Traffic congestion during rush hour
#10

In economics, what does 'GNP' stand for?

Gross National Product
Gross Net Profit
General National Production
Gross National Price
#11

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

Public education
Vaccination programs
Air pollution from a factory
Subsidized healthcare
#12

In economics, what does 'CPI' stand for?

Consumer Price Index
Cost Per Item
Consumer Purchasing Indicator
Current Price Index
#13

Which of the following best describes the concept of 'elasticity of demand'?

The measure of responsiveness of quantity demanded to a change in price
The measure of responsiveness of quantity demanded to a change in income
The measure of responsiveness of supply to a change in price
The measure of responsiveness of supply to a change in income
#14

What is the formula for calculating price elasticity of demand?

Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Total change in quantity demanded / Total change in price
Total change in price / Total change in quantity demanded
#15

What is the formula for calculating total revenue?

Price × Quantity Demanded
Price × Quantity Supplied
Quantity Demanded / Price
Quantity Supplied / Price
#16

What is the formula for calculating marginal cost?

Change in total cost / Change in quantity
Change in quantity / Change in total cost
Total cost / Change in quantity
Change in quantity / Total cost
#17

What is the formula for calculating average revenue?

Total revenue / Quantity sold
Price × Quantity sold
Quantity sold / Total revenue
Quantity sold / Price

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