Principles of Business and Economic Management Quiz

Test your knowledge with questions on perfect competition, GDP, fiscal policy, monopolistic competition, and more in microeconomics.

Practice Learn Test

Which of the following is a characteristic of perfect competition?

Large number of buyers and sellers

Homogeneous products

No barriers to entry or exit

All of the above

What is the law of demand in economics?

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

What is the formula for calculating total revenue?

Total Revenue = Price × Quantity

Total Revenue = Price ÷ Quantity

Total Revenue = Price + Quantity

Total Revenue = Price - Quantity

What is the main objective of microeconomics?

To study the behavior of individual consumers and firms

To analyze the economy as a whole

To study the behavior of the government in the economy

To understand international trade dynamics

Which of the following is a characteristic of a command economy?

Private ownership of resources

Centralized government planning

Market-driven allocation of resources

Decentralized decision-making

What is the primary function of a central bank?

To control inflation

To regulate interest rates

To issue currency

All of the above

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

GDP = C + I + G + (X - M)

GDP = C + I + NX

GDP = C + I + G

GDP = C + I + (G - NX)

Which of the following is NOT a factor of production?

Land

Labor

Money

Capital

Which of the following is NOT a characteristic of monopolistic competition?

Many buyers and sellers

Differentiated products

No barriers to entry or exit

Price taker

#10

What is fiscal policy?

The management of government spending and taxation to influence the economy

The management of money supply and interest rates to influence the economy

The regulation of trade between countries

The control of inflation through monetary measures

#11

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

The total cost of producing a good or service

The cost of utilizing resources in production

The cost of the next best alternative forgone

The cost of labor

#12

What does the term 'elasticity of demand' measure?

The responsiveness of quantity demanded to changes in price

The responsiveness of price to changes in quantity demanded

The total revenue earned from a product

The sensitivity of demand to changes in income

#13

What is the difference between monetary policy and fiscal policy?

Monetary policy involves government spending, while fiscal policy involves the control of interest rates

Monetary policy involves the control of money supply and interest rates, while fiscal policy involves government spending and taxation

Monetary policy focuses on the regulation of international trade, while fiscal policy focuses on domestic economic activities

There is no difference between monetary policy and fiscal policy

#14

What is the Phillips Curve?

A curve showing the relationship between inflation and unemployment

A curve showing the relationship between GDP and inflation

A curve showing the relationship between interest rates and investment

A curve showing the relationship between government spending and economic growth

#15

What is the Tragedy of the Commons?

A situation where individuals overuse or deplete a shared resource

A market failure caused by government intervention

A theory explaining the behavior of monopolistic firms

A concept in international trade theory