Applied Economics Quiz 84 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. A change in a determinant will lead to a proportionately greater change in demand or supply

Correct Answer: B) Elastic.

2. The study of Economics is intensive and varied.

Correct Answer: B) FALSE.

3. What happens to the demand curve when there is an increase in consumer income?

Correct Answer: B) The demand curve shifts right.

4. A situation where there is a general increase in prices and fall in the purchasing value of money

Correct Answer: B) Inflation.

5. The economic system that based on the working of demand and supply, decisions are made on what goods and services to produce.

Correct Answer: B) Market economy.

6. These are examples of agribusiness except:

Correct Answer: C) Furniture making.

7. It is a state of balance when demand is equal to supply.

Correct Answer: B) Equilibrium.

8. Having the ability or capacity to produce more output compared to another entity.

Correct Answer: A) Absolute Advantage.

9. Which of the following is not an assumption in economics?

Correct Answer: B) Sweeping generalization.

10. The following are examples of physical capital, EXCEPT ONE:

Correct Answer: C) Education.

11. A business tool that helsps you to understand whre your business power lies in present competitiveness.

Correct Answer: D) Porter's Five Forces.

12. Growth is essential in business

Correct Answer: A) Big ideas.

13. ..... is the scientific study of allocation of scarce resources to answer unlimited human wants.

Correct Answer: A) Economics.

14. Industry that requires a lot of machines and equipment to produce a product is called what?

Correct Answer: B) Heavy.

15. The average product refers to the average contribution per unit of input.

Correct Answer: A) TRUE.

16. Shows the group of indifference curves under the microeconomic concept.

Correct Answer: A) Indifference Map.

17. This book analyzed how markets organized economic life and and produced rapid economic growth

Correct Answer: D) The Wealtn of Nations.

18. Provide inputs that the firms in an industry need to create the goods and services that they in turn sell to their buyers.

Correct Answer: B) Suppliers.

19. Refers to the gap in income that exists between the rich and the poor.

Correct Answer: C) Income inequality.

20. Only one seller in a market

Correct Answer: B) Monopoly.