Principles of Economic Management Quiz

Test your knowledge with questions on monopolistic competition, GDP, market types, fiscal policy, and more in this econometrics quiz.

Practice Learn Test

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

The cost of production

The monetary cost of an opportunity

The value of the next best alternative foregone

The cost of purchasing goods and services

In economics, what does GDP stand for?

Gross Domestic Production

Gross Domestic Profit

Gross Domestic Product

Gross Development Process

Which of the following is NOT a factor of production?

Labor

Land

Technology

Money

Which of the following is a fiscal policy tool?

Open market operations

Adjusting reserve requirements

Government spending

Setting the discount rate

What is the law of demand in economics?

As price decreases, quantity demanded increases

As price increases, quantity demanded decreases

As price increases, quantity demanded increases

As price decreases, quantity demanded decreases

What is the formula for calculating total revenue?

Price × Quantity Sold

Price ÷ Quantity Sold

Price - Quantity Sold

Price + Quantity Sold

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

Many sellers

Product differentiation

Perfectly elastic demand curve

Free entry and exit

Which of the following is a characteristic of a perfectly competitive market?

Few buyers and sellers

Product differentiation

Barriers to entry

Price taker behavior

What is the law of diminishing marginal utility?

As consumption increases, total utility decreases

As consumption increases, marginal utility decreases

As consumption decreases, total utility increases

As consumption decreases, marginal utility decreases

#10

What is the formula to calculate 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

#11

What is the primary function of central banks?

Regulating interest rates

Issuing currency

Supervising commercial banks

All of the above

#12

What is the concept of 'marginal cost' in economics?

The total cost of production

The cost of producing one additional unit of a good or service

The average cost of production

The fixed cost of production

#13

What does the term 'inflation' refer to in economics?

Increase in the general price level of goods and services

Decrease in the general price level of goods and services

Stable prices of goods and services over time

Changes in income levels of individuals