This quiz works best with JavaScript enabled. Home > Economics > Applied Economics > Applied Economics – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Applied Economics Quiz 50 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a consequence of scarcity? A) Unlimited resources. B) Unlimited wants. C) Opportunity cost. D) Equal distribution of resources. Show Answer Correct Answer: C) Opportunity cost. 2. The following are factors that affect "What to produce?" economic problem except: A) Availability of resources. B) Target economic growth rate. C) Customs and traditions. D) Physical environment. Show Answer Correct Answer: B) Target economic growth rate. 3. One disadvantage of a corporation is ..... A) The corporation provides limited liability for its owners. B) The corporation can sell stock to raise revenue. C) The corporation is subject to many government regulations. D) The corporation pays limited taxes. Show Answer Correct Answer: C) The corporation is subject to many government regulations. 4. It is a measure of how much buyers and sellers a respond to changes in market conditions. A) Supply. B) Demand. C) Equilibrium. D) Elasticity. Show Answer Correct Answer: D) Elasticity. 5. For the law of supply, as price rises, what happens to quantity supplied? A) It goes up. B) It goes down. C) It stays the same. D) It is not effected. Show Answer Correct Answer: A) It goes up. 6. What do we call the power in which consumers enjoy te market power and in the position to negotiate for lower prices of a product? A) Bargaining power of suppliers. B) Bargaining power of buyers. C) Threat of potential entrants. D) Intensity of industry rivalry. Show Answer Correct Answer: B) Bargaining power of buyers. 7. He must be a good administrator. A) Land. B) Labor. C) Capital. D) Entrepreneur. Show Answer Correct Answer: D) Entrepreneur. 8. An increase in the supply of money that leads to an increase in prices. A) Inflation. B) Deflation. C) Consumer price index. D) Consumer purchasing power. Show Answer Correct Answer: A) Inflation. 9. It is defined as limited nature of society's resources. A) Scarcity. B) Allocation. C) Economics. D) Microeconomics. Show Answer Correct Answer: A) Scarcity. 10. -shows the functional relationship between Quantity demanded for a commodity A) Supply crve. B) Law of Supply. C) Supply Function. D) Demand Function. Show Answer Correct Answer: D) Demand Function. 11. It is a limit to the volume that local producers can bring into the country. A) Import quota. B) Tariff. C) Export quota. D) Subsidy. Show Answer Correct Answer: A) Import quota. 12. Which of the following are NOT the KEY TAKEAWAYS of Consumer Theory? A) Consumer theory is the study of how people decide to spend their money based on their individual preferences and budget constraints. B) Building a better understanding of individuals' tastes and incomes is important because these factors impact the shape of the overall economy. C) Consumer theory is not flawless, though, as it based on a number of assumptions about human behavior. D) Use different financial instruments to earn a rate of return to accomplish financial goals and objectives. Show Answer Correct Answer: D) Use different financial instruments to earn a rate of return to accomplish financial goals and objectives. 13. In scientific way of problem solving, this stage requires observation. A) Identify the problem. B) Gather data. C) Hypothesis. D) Test Hypothesis. E) Analyze the results. Show Answer Correct Answer: B) Gather data. 14. Means that a given percentage changes in price leads to an equal percentage change in quantity demanded or supplied. A) Demand Curve. B) The Law of Supply. C) Unitary Elasticity. D) Cross Price Elasticity of Demand. E) Inelastic Demand. Show Answer Correct Answer: C) Unitary Elasticity. 15. It is a social science concerned with the efficient allocation of scarce resources that have alternative uses in order to achieve the maximum satisfaction of individuals unlimited needs and wants. A) Macroeconomics. B) Economics. C) Microeconomics. D) Normative Economics. Show Answer Correct Answer: B) Economics. 16. Which of these are the causes of migration ..... A) Poverty. B) Better Education. C) Unemployment. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Identify the type of economic system described in each statement.This is the economic system of China and USSR. A) Traditional Economy. B) Market Economy. C) Planned/ Command Economy. D) None of above. Show Answer Correct Answer: C) Planned/ Command Economy. 18. A mortgage clause that permits the lender to foreclose on and sell a property in default in order to recover the remainder of the loan. A) Buying Power. B) Power of Sale. C) Supply Power. D) Demand Power. Show Answer Correct Answer: B) Power of Sale. 19. Describes how consumers make decisions about what to buy given their income and prices of goods and services. A) Consumption. B) Consumer Theory. C) Utility. D) Utility function. Show Answer Correct Answer: B) Consumer Theory. 20. The economic transformation of a country could be linked on its: A) Human Resources. B) Natural Resources. C) Physical Resources. D) Susana Resources. Show Answer Correct Answer: A) Human Resources. ← 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