Fundamentals of Economics and Business Environment Quiz

Test your knowledge with these 14 questions covering microeconomics, GDP, fiscal & monetary policies, trade, and economic concepts.

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1. What is the primary focus of microeconomics?

National economies

Individual markets and actors

Global economic trends

Macroeconomic policies

8. What is the concept of 'opportunity cost' in economics?

The cost of producing one additional unit of a good

The cost of choosing one option over the next best alternative

The cost of raw materials

The cost of advertising

12. Who is considered the father of modern economics?

Adam Smith

John Maynard Keynes

Karl Marx

Milton Friedman

19. What does the term 'Laissez-faire' mean in economic theory?

Government intervention in the economy

Free-market capitalism with minimal government interference

Monopoly regulation

Trade protectionism

2. In business, what does SWOT stand for?

Strengths, Weaknesses, Opportunities, Threats

Sales, Workers, Operations, Technology

Strategy, Workforce, Organization, Tactics

Supply, Workflow, Objectives, Training

3. What is the formula for calculating Gross Domestic Product (GDP)?

Consumption + Investment + Government Spending + (Exports - Imports)

Revenue - Expenses

Profit / Loss

Supply * Demand

6. What is the role of the Federal Reserve in the United States?

Regulating international trade

Overseeing environmental policies

Controlling monetary policy and regulating banks

Managing social security programs

7. Which economic indicator measures the average change in prices paid by consumers for goods and services over time?

Unemployment rate

Consumer Price Index (CPI)

Gross Domestic Product (GDP)

Producer Price Index (PPI)

11. What is the purpose of fiscal policy in economics?

Controlling the money supply

Stabilizing the economy through government spending and taxation

Regulating international trade

Setting interest rates

#10

4. Which economic system is characterized by private ownership of the means of production?

Socialism

Capitalism

Communism

Fascism

#11

5. What is the Tragedy of the Commons?

A play by William Shakespeare

A theory in economics about overuse of shared resources

A political manifesto

A psychological phenomenon

#12

9. In international trade, what does the term 'dumping' refer to?

Exporting goods below their production cost to gain market share

Recycling industrial waste

Investing in foreign markets

Reducing import tariffs

#13

10. What is the formula for calculating the elasticity of demand?

Percentage change in quantity demanded / Percentage change in price

Total revenue / Quantity demanded

Price * Quantity

Income - Expenses

#14

13. What is the concept of the 'invisible hand' in economics?

The role of government in economic affairs

The self-regulating nature of free markets

The impact of consumer preferences on production

The importance of international trade