This quiz works best with JavaScript enabled. Home > Economics > Applied Economics > Applied Economics – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Applied Economics Quiz 40 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a major advantage of a business that is a partnership rather than a sole proprietorship? A) The responsibility for the business is shared. B) The business is easy to set up. C) The partners are not responsible for business debts. D) The business is easy to sell. Show Answer Correct Answer: A) The responsibility for the business is shared. 2. It is Christmas season. Which of the following statements is true? A) Quantity demanded tend to decrease because of the high cost of production in this season. B) Quantity demanded tend to decrease because of Christmas bonuses received by employees. C) Quantity demanded tend to increase because of the increase in the number of sellers in the market. D) Quantity demanded tend to increase because of the culture of gift giving in this season. Show Answer Correct Answer: D) Quantity demanded tend to increase because of the culture of gift giving in this season. 3. The difference of housing from other commodities is that A) It can be resold. B) It takes time to produce. C) Both A and B. D) Neither A nor B. Show Answer Correct Answer: C) Both A and B. 4. Define minimum wage A) The minimum price firms are willing to pay for labour. B) The minimum price unskilled workers are willing to supply their labour for. C) The minimum price of labour set by governments in the labour market. D) The minimum price of labour set by governments in the resource market. Show Answer Correct Answer: C) The minimum price of labour set by governments in the labour market. 5. This means all other related variables, except those that are being studied at the moment, are held constant. A) Ceteris paribus. B) Law of Demand. C) Law of Supply. D) Market equilibrium. Show Answer Correct Answer: A) Ceteris paribus. 6. The equilibrium point where labor demand and supply meet at a certain wage and quantity of labor. A) Labor Demand. B) Market Clearing. C) Labor Supply. D) None of above. Show Answer Correct Answer: B) Market Clearing. 7. A system of exchange in which products are traded directly for other products. A) Barter. B) Selling. C) Price Ceiling. D) Money. Show Answer Correct Answer: A) Barter. 8. What is the implication when quantity demanded equals quantity supplied? A) The government must be intervening in the market. B) There is a shortage. C) There is a surplus. D) None of the above. Show Answer Correct Answer: D) None of the above. 9. What does the French word "laissez-faire" means? A) Allow to do. B) Produce everything. C) Command economy. D) Market. Show Answer Correct Answer: A) Allow to do. 10. It refers to the process of producig or creating goods needed by the households to satisfy their needs. A) Distribution. B) Production. C) Exchange. D) Cosumption. Show Answer Correct Answer: B) Production. 11. In moving along a given demand curve, quantity changes in response to a change in A) Consumer Taste. B) Consumer Income. C) Consumer Expectations. D) Price of the Good. Show Answer Correct Answer: D) Price of the Good. 12. What does LLP stand for? A) Limited Liability Partnership. B) Lying Losers Pos. C) Losing Limited Pace. D) Limited Liability Property. Show Answer Correct Answer: A) Limited Liability Partnership. 13. In this economic system the government can interfere in the prices of the products if needed. A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: D) Mixed. 14. It is one of the cause of poverty. A) Economic development. B) Inflation. C) Increase in mortality rate. D) Urbanization. Show Answer Correct Answer: B) Inflation. 15. It is the establishment of a new businesses through revenues earned on fees collected from them and on taxes imposed on the incomes of these businesses. A) Impact of International Trade. B) Impact of Household. C) Impact of Government. D) Impact of study. Show Answer Correct Answer: C) Impact of Government. 16. Oreo cookies are now extremely expensive to purchase. Instead of buying Oreo cookies, I now want to buy Chips Ahoy. What determinant of demand does this likely fall under? A) Change in Price of Complementary Good. B) Change in Price of Substitute Good. C) Change in Consumer Price Expectations. D) Change in Number of Consumers in the Market. Show Answer Correct Answer: B) Change in Price of Substitute Good. 17. What is the relationship between Economics and History? A) They have no relationship. B) Economics shapes historical events. C) History has no impact on economic developments. D) Economics is solely based on ancient historical data. Show Answer Correct Answer: B) Economics shapes historical events. 18. The Application of Economic theories and models in real life. A) Economics. B) Applied economics. C) Needs. D) Wants. Show Answer Correct Answer: B) Applied economics. 19. Market Structure is best defined as the organizational and other characteristics of a market. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 20. True or false:Sellers are able to enter and exit the market freely in a perfect competition, A) True. B) False. Show Answer Correct Answer: A) True. ← 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