Market Dynamics in Economics Quiz
Test your knowledge on market equilibrium, demand curves, competition, subsidies, and more with this comprehensive economics quiz.
#1
Which of the following best describes the law of demand?
As the price increases, demand decreases
As the price decreases, demand remains unchanged
As the price increases, demand also increases
As the price decreases, supply decreases
#2
How does inflation affect the purchasing power of money?
Increases purchasing power
Decreases purchasing power
Does not affect purchasing power
Initially decreases, then increases purchasing power over time
#3
What is meant by 'market equilibrium'?
When demand is greater than supply
When supply is greater than demand
When the amount supplied is equal to the amount demanded
When the government intervenes to set the price
#4
Which factor does not shift the demand curve?
Change in income
Change in the price of the good itself
Change in consumer preferences
Change in the price of related goods
#5
In the context of market structures, which characteristic is typical of perfect competition?
A single seller
Limited consumer choice
Homogeneous products
Significant barriers to entry
#6
What indicates a perfectly inelastic demand?
When quantity demanded changes significantly with a small change in price
When quantity demanded does not change with a change in price
When quantity demanded changes slightly with a change in price
When quantity demanded increases as price increases
#7
Which of the following is not a characteristic of monopolistic competition?
Many sellers
Homogeneous products
Free entry and exit in the long run
Product differentiation
#8
What does the concept of 'price elasticity of demand' measure?
The responsiveness of supply to a change in demand
The change in demand when a good's price increases
The responsiveness of demand to a change in price
The change in price when supply exceeds demand
#9
What is the primary goal of antitrust laws?
To increase tax revenue from large corporations
To promote competition and prevent monopolies
To regulate prices of essential goods and services
To protect the environment from industrial pollution
#10
Which of the following is a key feature of oligopolistic markets?
Perfect information
Many sellers and many buyers
Interdependence among firms
Homogeneous products
#11
Which economic concept explains the trade-off between efficiency and equity?
The Phillips curve
The Laffer curve
The production possibility frontier
The Lorenz curve
#12
In the context of game theory, what is a 'Nash Equilibrium'?
When all players have strategies that result in the highest possible payoff for themselves
When one player's strategy determines the strategies of all other players
A situation where no player can benefit by changing their strategy while the other players keep theirs unchanged
The outcome where all players decide to cooperate, resulting in an optimal collective payoff
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