Applied Economics Quiz 30 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. It states that as additional units of a good are consumed, the additional utility derived from each additional unit tends to diminish.

Correct Answer: A) Law of Diminishing Marginal Utility.

2. Studying Economics helps people specially students to use and manage scarce resources wisely

Correct Answer: B) TRUE.

3. In a SWOT analysis, which two elements are part of the internal environment?

Correct Answer: D) Weakness & Strengths.

4. Qd = a-b(P)

Correct Answer: D) Law of Demand.

5. What happened to a supply curve when supply goes down?

Correct Answer: A) Moves left.

6. This factor includes the stability and strength of the government and good leadership.

Correct Answer: B) Political Factors.

7. If there is an inadequate land, insufficient funds, unskilled workers and the like, then there is what we call?

Correct Answer: A) Scarcity of resources.

8. It includes all internal and external factors that affect the performance ofthe company.

Correct Answer: D) Business Environment.

9. The process by which one or two or more persons engage in commercial activity for profit.

Correct Answer: A) Business.

10. Raw materials that comes from the ground

Correct Answer: B) Land.

11. Household supply their savings, for interest or for claim to future profits

Correct Answer: A) Capital market.

12. These are undesirable impacts of external factors because they can potentially impair theprofitability of firms in an industry.

Correct Answer: C) Threats.

13. Perfect competition is characterized by all of the following except

Correct Answer: D) Considerable advertising by individual firms.

14. It is the set of all quantities supplied at different price levels at a given time period.

Correct Answer: A) Supply.

15. Defined as:the goods and services produced in one country and purchased by residents of another country

Correct Answer: B) Export.

16. Resources are limited in nature, but human wants and needs are unlimited.

Correct Answer: A) True.

17. Total output produced by a firm

Correct Answer: A) Total product.

18. Listed here are three fundamental economic questions EXCEPT:

Correct Answer: C) When to produce.

19. Oligopoly sellers producing similar and differentiated products. This characterizes that the products are .....

Correct Answer: D) Both A and B.

20. What is the subject your taking up?

Correct Answer: A) Applied Economics.