Principles of Economic Analysis Quiz
Test your knowledge with 12 questions covering key concepts such as GDP, fiscal policy, demand, supply, and more in this econometrics quiz.
#1
What is opportunity cost?
The monetary cost of an opportunity
The value of the next best alternative foregone when a decision is made
The total cost of production
The cost of switching from one opportunity to another
#2
Which of the following is NOT a factor of production?
#3
What is the law of demand?
As price increases, quantity demanded increases
As price decreases, quantity demanded decreases
As price increases, quantity demanded decreases
As price decreases, quantity demanded increases
#4
Which of the following is a measure of central tendency?
Standard deviation
Variance
Median
Range
#5
What is the law of supply?
As price increases, quantity supplied increases
As price decreases, quantity supplied decreases
As price increases, quantity supplied decreases
As price decreases, quantity supplied increases
#6
What does GDP stand for?
Gross Domestic Product
Growth Determining Policy
General Demand Preference
Governmental Development Plan
#7
What is the formula to calculate price elasticity of demand?
Percentage change in quantity demanded divided by percentage change in price
Percentage change in price divided by percentage change in quantity demanded
Absolute change in quantity demanded divided by absolute change in price
Absolute change in price divided by absolute change in quantity demanded
#8
What is the law of diminishing marginal utility?
As a consumer consumes more units of a good or service, the additional satisfaction from each additional unit decreases
The more units of a good or service a consumer consumes, the greater the total satisfaction
Consumers will always choose the option that gives them the greatest utility
The marginal utility of a good or service increases as the price decreases
#9
What is fiscal policy?
A policy that involves controlling the money supply and interest rates
A policy that involves government spending and taxation
A policy that involves regulating the stock market
A policy that involves controlling international trade
#10
Which of the following is a characteristic of perfect competition?
A large number of buyers and sellers
Differentiated products
Barriers to entry and exit
Price-setting power for individual firms
#11
In economics, what does 'ceteris paribus' mean?
All other things being equal
Everything changes
Supply equals demand
There is no change in demand
#12
Which of the following is a tool of monetary policy?
Government spending
Taxation
Open market operations
Subsidies
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