Principles of Economics and Production Quiz

Test your knowledge of microeconomics with this quiz! Questions cover perfect competition, monopolistic competition, oligopoly, factors of production, GDP, fiscal and monetary policy, elasticity of demand, supply, production function, subsidies, and more.

Practice Learn Test

Which of the following is a characteristic of perfect competition?

Many buyers and sellers

A single seller dominating the market

High barriers to entry

Product differentiation

What is opportunity cost?

The total cost of producing a good or service

The monetary cost of an economic decision

The cost of the next best alternative foregone when a decision is made

The cost of raw materials used in production

What does GDP stand for in economics?

Gross Domestic Price

Gross Domestic Profit

Gross Domestic Product

Gross Development Plan

What is the law of demand in economics?

As the price of a good or service decreases, the quantity demanded increases, and vice versa

As the price of a good or service increases, the quantity demanded decreases, and vice versa

As the price of a good or service decreases, the quantity supplied increases, and vice versa

As the price of a good or service increases, the quantity supplied increases, and vice versa

What is fiscal policy?

Government policy that controls the money supply and interest rates

Government policy that regulates the overall economy through taxing and spending

Government policy that influences the economy through changes in the money supply

Government policy that focuses on controlling inflation and unemployment rates

What does the law of diminishing marginal returns state?

Total output increases at a decreasing rate as more units of a variable input are added

Total output decreases at a decreasing rate as more units of a variable input are added

Total output increases at a constant rate as more units of a variable input are added

Total output decreases at a constant rate as more units of a variable input are added

Which of the following is a characteristic of monopolistic competition?

Many buyers and sellers

A single seller dominating the market

Homogeneous products

Product differentiation

What is the formula for calculating total revenue?

Price × Quantity

Price / Quantity

Price + Quantity

Price - Quantity

Which of the following is a characteristic of oligopoly?

Many buyers and sellers

A single seller dominating the market

Interdependence among firms

Perfect information

#10

What is the formula for calculating average variable cost (AVC)?

Total Variable Cost / Quantity

Total Variable Cost × Quantity

Total Variable Cost - Quantity

Total Variable Cost + Quantity

#11

Which of the following is NOT a factor of production?

Land

Labor

Capital

Profit

#12

What does the law of diminishing marginal utility suggest?

Consumers will demand more of a good as its price decreases

The more of a good a person consumes per period, the smaller the increase in satisfaction

Higher prices lead to higher quantity demanded

The price of a good will decrease as its quantity demanded increases

#13

What does the term 'elasticity of demand' measure?

The responsiveness of quantity demanded to changes in price

The total demand for a product in the market

The quantity of a good demanded at a specific price

The responsiveness of quantity supplied to changes in price

#14

What does the term 'cross-price elasticity of demand' measure?

The responsiveness of quantity demanded to changes in price

The responsiveness of quantity supplied to changes in price

The responsiveness of quantity demanded for one good to changes in the price of another good

The responsiveness of quantity supplied for one good to changes in the price of another good

#15

What is the difference between nominal GDP and real GDP?

Nominal GDP is adjusted for inflation, while real GDP is not

Real GDP is adjusted for inflation, while nominal GDP is not

Nominal GDP includes only goods and services produced domestically, while real GDP includes imports and exports

Real GDP is calculated annually, while nominal GDP is calculated quarterly

Principles of Economics and Production Quiz

Which of the following is a characteristic of perfect competition?

What is opportunity cost?

What does GDP stand for in economics?

What is the law of demand in economics?

What is fiscal policy?

What does the law of diminishing marginal returns state?

Which of the following is a characteristic of monopolistic competition?

What is the formula for calculating total revenue?

Which of the following is a characteristic of oligopoly?

What is the formula for calculating average variable cost (AVC)?

Which of the following is NOT a factor of production?

What does the law of diminishing marginal utility suggest?

What does the term 'elasticity of demand' measure?

What does the term 'cross-price elasticity of demand' measure?

What is the difference between nominal GDP and real GDP?

Quiz Questions with Answers

Test Your Knowledge

Popular Quizzes in Microeconomics

Popular Quizzes in Economics

Other Quizzes to Explore