Economics Quiz 04 Preparation Online

1. The value of the good or service forgone by choosing another investment is called ?

A. (A) opportunity cost

B. (C) disposable income

C. (D) consumer price index

D. (B) purchasing power parity

2. The central role of markets is to determine the ?

A. (C) level of income

B. (A) quality of goods

C. (B) quantity of goods

D. (D) price of goods

3. When analyzing the impact of a variable on the economic system, the other things ?

A. (C) must not be taken into consideration

B. (A) must be kept constant

C. (B) must also be analyzed

D. (D) none of these

4. Who is considered the founder of modern Macroeconomics ?

A. (D) Milton Friedman

B. (C) Friedrich Hayek

C. (A) Adam Smith

D. (B) John Keynes

5. Goods produced to produce yet other goods is called ?

A. (B) capital

B. (C) investment

C. (A) final goods

D. (D) resources

6. Inputs are combined with technology to produce outputs. The fundamental inputs (also called factors of production) are ?

A. (D) land, labor, capital, and investment

B. (B) land and labor

C. (C) land, labor, and capital

D. (A) land and capital

7. Which economic term is used to represent inequality in income distribution ?

A. (C) Gini

B. (A) GDP

C. (B) GNP

D. (D) HDI

8. Consider a world without scarcity of resources. Then what would be the consequences ?

A. (C) Economics would no longer be a useful subject

B. (A) All prices would be zero

C. (D) All of the above

D. (B) Markets would be unnecessary

9. The fundamental concept of Economics about resources is that the resources are ?

A. (D) unlimited

B. (C) scarce

C. (A) equally distributed

D. (B) unequally distributed

10. Who is considered the founder of Microeconomics ?

A. (C) Friedrich Hayek

B. (A) Adam Smith

C. (B) John Keynes

D. (D) Milton Friedman

Economics Quiz 04 Preparation Online

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