This quiz works best with JavaScript enabled. Home > Economics > Applied Economics > Applied Economics – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Applied Economics Quiz 31 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A supply curve differs from a supply schedule because a supply curve. A) Is a graph and supply schedule is a table. B) Holds the number of suppliers constant, whereas the supply schedule allows the number to vary. C) Holds resource prices constant, whereas the supply schedule allows them to vary. D) Represents one firm, whereas the supply schedule represents all firms in the market. Show Answer Correct Answer: A) Is a graph and supply schedule is a table. 2. A situation in which the quantity supplied is greater than the quantity demanded. A) Market Surplus. B) Market Sale. C) Market price. D) Market adjustment. Show Answer Correct Answer: A) Market Surplus. 3. Most other soft drinks are close competitors of Coca-Cola, but Pepsi would beclassified as ..... competitor. A) Direct. B) Indirect. C) Substitute. D) Alternative. Show Answer Correct Answer: C) Substitute. 4. What is the fundamental economic problem arising from the limited availability of resources relative to unlimited human wants? A) Scarcity. B) Opportunity Cost. C) Supply and Demand. D) Market Equilibrium. Show Answer Correct Answer: A) Scarcity. 5. Refers to the process of producing or creating goods needed by the households to satisfy their needs. The factors of production are called inputs and the goods and services that have been created are called outputs of production. A) Production. B) Distribution. C) Exchange. D) Consumption. E) Public finance. Show Answer Correct Answer: A) Production. 6. Which of the following example is an example of capital resources? A) Ice maker machine. B) Bread. C) Doctors. D) Entrepreneur. Show Answer Correct Answer: A) Ice maker machine. 7. What do you call the form of business organization that the legal entity is separated from its owners, the shareholders? A) Business. B) Sole Proprietorship. C) Corporation. D) Cooperative. Show Answer Correct Answer: C) Corporation. 8. The amount of money we pay for a good or service A) Currency. B) Price. C) Inflation. D) Economics. Show Answer Correct Answer: B) Price. 9. A company is viable if it's expected to make profit one day. A) True. B) False. Show Answer Correct Answer: A) True. 10. Economic system where government controls everything. A) Market. B) Command. C) Mixed. D) Free Enterprise. Show Answer Correct Answer: B) Command. 11. The state of limited availability of resources to support needs. A) Needs. B) Wants. C) Scarcity. D) Opportunity cost. Show Answer Correct Answer: C) Scarcity. 12. When does the supply curve shift to the right? A) When production costs increase. B) When there is a decrease in the price of inputs. C) When the government imposes higher taxes on businesses. D) When demand for the product decreases. Show Answer Correct Answer: B) When there is a decrease in the price of inputs. 13. Which of the following gives the best meaning of the term gross domestic product? A) Conditions of economic system in which the organization operates. B) Total quantity of goods and services produced by an economic system. C) Total quantity of goods that a country's citizen can purchase with the currency used in their economic system. D) Total values of all goods and services produced within a given period by national economy through domestic factors of production. Show Answer Correct Answer: D) Total values of all goods and services produced within a given period by national economy through domestic factors of production. 14. What term describes the tools and technology used to make a product? A) Capital goods. B) Exports. C) Human capital. D) Imports. Show Answer Correct Answer: A) Capital goods. 15. ..... is a microeconomic law that states, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa. A) Law of Supply and Demand. B) Law of Supply. C) Law of Demand. D) None of above. Show Answer Correct Answer: C) Law of Demand. 16. According to ....., Economics is the science of choice. It studies how people choose to use scarce resources to produce various commodities. A) Nordhaus. B) Fajardo. C) Webster. D) Sicat. Show Answer Correct Answer: A) Nordhaus. 17. Perfect competition exists in a market containing a large number of firms and meets the ..... conditions that define the market structure. A) Four. B) Five. C) Six. D) Seven. Show Answer Correct Answer: C) Six. 18. On a hot summer afternoon, I went to the store with P20 in my pocket. I was so thirsty, I wanted to buy both soda and ice cream but each of them costs P20. Finally, I made up my mind and bought the soda. Which of the following statement is true? A) Ice cream represents my opportunity cost. B) P20 is the value of my opportunity cost. C) Soda has greater value for me because of my thirst. D) All of the above statements are true. Show Answer Correct Answer: D) All of the above statements are true. 19. What is the concept that when resources are limited, choosing one option often involves sacrificing another? A) Trade-Offs. B) Cost-Benefit Analysis. C) Risk Assessment. D) Resource Allocation. Show Answer Correct Answer: A) Trade-Offs. 20. Is the market value of goods and services produced by all citizens of a country-both domestically and abroad. A) GNP. B) GDP. Show Answer Correct Answer: A) GNP. ← PreviousNext →Related QuizzesEconomics QuizzesApplied Economics Quiz 1Applied Economics Quiz 2Applied Economics Quiz 3Applied Economics Quiz 4Applied Economics Quiz 5Applied Economics Quiz 6Applied Economics Quiz 7Applied Economics Quiz 8Applied Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books