Principles of Economic Growth and Resource Allocation Quiz

Test your knowledge with questions on factors of production, GDP, market structures, unemployment, fiscal & monetary policy, and more.

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Which of the following is NOT a factor of production?

Labor

Capital

Money

Land

What does GDP stand for?

General Domestic Product

Gross Domestic Product

Gross Domestic Production

General Domestic Production

What does the term 'opportunity cost' refer to?

The monetary cost of an opportunity

The value of the next best alternative forgone

The cost of opportunities gained

The cost of resources used

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

Private ownership of resources

Market forces determine production

Central planning by the government

Consumer sovereignty

What is the law of diminishing marginal returns?

As more of a variable input is added to a fixed input, the additional output eventually decreases

As more of a variable input is added to a fixed input, the additional output remains constant

As more of a variable input is added to a fixed input, the additional output increases indefinitely

As more of a variable input is added to a fixed input, the total output remains constant

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

Many sellers

Product differentiation

Price taker

Easy entry and exit

What is the formula for calculating the unemployment rate?

Number of unemployed / Labor force

Number of employed / Labor force

Number of unemployed / Total population

Number of employed / Total population

What is the role of the Federal Reserve in the U.S. economy?

Fiscal policy implementation

Monetary policy regulation

Tax collection

Trade negotiation

What does the term 'comparative advantage' refer to in international trade?

When a country can produce a good at a lower opportunity cost than another country

When a country can produce more of a good with the same amount of resources as another country

When a country has absolute superiority in production

When a country has higher tariffs than other countries

#10

Which of the following is a tool used by the government to correct market failures?

Subsidies

Tariffs

Quotas

Monopolies

#11

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

Many buyers and sellers

Homogeneous products

Price maker

Perfect information

#12

Which of the following is NOT a component of aggregate demand?

Consumption

Investment

Government spending

Exports

#13

What is the formula for calculating the price elasticity of demand?

Percentage change in quantity demanded / Percentage change in price

Percentage change in price / Percentage change in quantity demanded

Change in quantity demanded / Change in price

Change in price / Change in quantity demanded

#14

What is the Lorenz curve used to measure?

Income inequality

Price elasticity of demand

Demand elasticity

Consumer surplus

#15

Which of the following is NOT a determinant of supply?

Technology

Expectations

Income

Number of sellers