Fundamentals of Economics and Economic Decision-Making Quiz
Test your knowledge of GDP, supply and demand, market structures, fiscal and monetary policies, and more with this microeconomics quiz.
#1
What does GDP stand for in economics?
Gross Domestic Profit
Gross Domestic Product
Global Domestic Production
Government Development Plan
#2
Which of the following is NOT a factor of production?
#3
What does the term 'opportunity cost' refer to in economics?
The cost of producing an additional unit of a good
The cost of giving up the next best alternative
The cost of raw materials
The cost of labor
#4
What is the law of demand?
As the price of a good increases, the quantity demanded decreases
As the price of a good increases, the quantity demanded increases
As the price of a good decreases, the quantity demanded decreases
As the price of a good decreases, the quantity demanded increases
#5
What is the law of supply?
As the price of a good increases, the quantity supplied decreases
As the price of a good increases, the quantity supplied increases
As the price of a good decreases, the quantity supplied decreases
As the price of a good decreases, the quantity supplied increases
#6
What does the term 'elasticity' measure in economics?
The responsiveness of quantity demanded to a change in price
The total revenue generated by a product
The percentage change in quantity demanded
The percentage change in price
#7
Which market structure is characterized by a large number of sellers with similar products?
Monopoly
Oligopoly
Monopolistic competition
Perfect competition
#8
What is the role of a central bank in an economy?
To regulate interest rates
To control inflation
To issue currency
All of the above
#9
What is the concept of 'comparative advantage' in international trade?
When one country can produce a good more efficiently than another country
When one country can produce all goods more efficiently than another country
When one country has an absolute advantage in all goods over another country
When one country has no advantage in trade over another country
#10
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
Absolute change in quantity demanded / Absolute change in price
Absolute change in price / Absolute change in quantity demanded
#11
What is fiscal policy?
The manipulation of interest rates by a central bank
Government policy concerning taxation and spending
The regulation of imports and exports
Government policy concerning money supply
#12
What is the difference between microeconomics and macroeconomics?
Microeconomics focuses on individual markets, while macroeconomics focuses on the economy as a whole
Macroeconomics focuses on individual markets, while microeconomics focuses on the economy as a whole
Microeconomics focuses on the economy as a whole, while macroeconomics focuses on individual markets
Macroeconomics focuses on the economy as a whole, while microeconomics focuses on individual markets
#13
What is the difference between a recession and a depression?
A recession is shorter in duration than a depression
A depression is characterized by a larger decline in economic activity than a recession
A recession only affects certain sectors of the economy, while a depression affects the entire economy
There is no difference between a recession and a depression
#14
What is the formula for calculating the unemployment rate?
Number of unemployed people / Labor force
Number of unemployed people / Total population
Number of employed people / Labor force
Number of employed people / Total population
#15
What is the difference between nominal GDP and real GDP?
Nominal GDP is adjusted for inflation, while real GDP is not
Real GDP is adjusted for inflation, while nominal GDP is not
Nominal GDP includes only goods and services produced domestically, while real GDP includes goods and services produced internationally
Real GDP includes only goods and services produced domestically, while nominal GDP includes goods and services produced internationally
#16
What is the Phillips curve?
A curve showing the relationship between inflation and unemployment
A curve showing the relationship between interest rates and investment
A curve showing the relationship between government spending and economic growth
A curve showing the relationship between taxes and government revenue
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