Applied Economics Quiz 96 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. The viability of a business is measured by its profit and losses.

Correct Answer: A) True.

2. This is a method used by a business to find attributes that is important and to set them apart itself from its competitors.

Correct Answer: A) Differentiation.

3. These are costs or expenditures made by a seller or a company that cannot berecovered.

Correct Answer: C) Sunk costs.

4. The total quantity of a product or service that the marketplace can offer?

Correct Answer: C) Quantity Demanded.

5. ) What is a legal entity owned by individual stockholders?

Correct Answer: B) Corporation.

6. The figure above illustrates a linear demand curve. In the price range from $ 8 to $ 6, demand is and in the price range $ 4 to $ 2, demand is .

Correct Answer: C) Elastic; inelastic.

7. If the price of Frozen Yogurt increased then the demand for ice cream will

Correct Answer: A) Increase.

8. If a country were to join a free trade area, its business sector would gain because .....

Correct Answer: A) It could get tariff-free raw materials from countries inside the free trade area.

9. ..... is the cost of borrowing or the return on savings.

Correct Answer: A) Interest rate.

10. In this economic system there is protection for both sellers and consumers.

Correct Answer: D) Mixed.

11. The air is free, but the air from an aircon is an?

Correct Answer: A) Economic good.

12. .... This factor includes, fiestas, celebration of Christmas season, trends in Consumption.

Correct Answer: D) Culture and Lifestyle.

13. What is Economics?

Correct Answer: C) Distinguish as Applied and Social Science.

14. What is the significance of applied economics in guiding individual, business, and government decision-making?

Correct Answer: A) All of the above.

15. It is the measure of the unit of satisfaction.

Correct Answer: C) Happiness.

16. Why is a discounted airline ticket a form of price discrimination?

Correct Answer: C) Travelers in the same class pay different rates based on their demand.

17. Which of the following is the most common form of business organization?

Correct Answer: B) Sole proprietorship.

18. Which of the following market types has all firm selling products

Correct Answer: A) Perfect competition.

19. It is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

Correct Answer: D) Bond.

20. What is the act of choosing between alternative courses of action, often involving evaluating trade-offs and optimizing resource allocation?

Correct Answer: A) Decision-Making.