Economics

Question 1

1Economics is best described as the study of

Easy

A. banking and finance only B. how to make money C. government only D. how scarce resources are allocated to satisfy unlimited wants

Question 2

2A market where goods are bought and sold through the internet is

Easy

A. a barter market B. an online (electronic) market C. a black market D. a commodity exchange only

Question 3

3A price floor set above equilibrium in an agricultural market leads to

Hard

A. lower prices B. surplus produce C. black markets for buyers D. shortage

Question 4

4Goods that are free in supply and have no price, such as air, are

Easy

A. free goods B. economic goods C. inferior goods D. capital goods

Question 5

5A tax whose rate increases as income increases is

Easy

A. indirect B. regressive C. progressive D. proportional

Question 6

6Per capita income is

Easy

A. total exports B. national income divided by population C. national income times population D. government income

Question 7

7Hoarding of goods by traders leads to

Easy

A. more supply B. equilibrium C. lower prices D. artificial shortage and higher prices

Question 8

8A dependency ratio is calculated as

Hard

A. births divided by deaths B. workers divided by population C. GDP divided by population D. dependants divided by the working population

Question 9

9A retailer

Easy

A. sells goods in small quantities to final consumers B. manufactures goods C. buys in bulk from producers only D. exports goods

Question 10

10Capital as a factor of production refers to

Easy

A. money only B. land C. labour D. man-made goods used to produce other goods

Question 11

11A rent control is an example of a

Easy

A. maximum price B. tax C. minimum price D. subsidy

Question 12

12Total cost is made up of

Easy

A. fixed cost plus variable cost B. price times quantity C. marginal cost only D. revenue minus profit

Question 13

13GNP equals GDP plus

Easy

A. net income from abroad B. depreciation C. indirect taxes D. subsidies

Question 14

14Barter is

Easy

A. buying with money B. saving money C. the direct exchange of goods for goods D. borrowing from a bank

Question 15

15Import substitution industrialisation aims to

Easy

A. export raw materials only B. import more goods C. stop all trade D. produce locally goods that were previously imported

Question 16

16Equilibrium price is the price at which

Easy

A. quantity demanded equals quantity supplied B. the government fixes the price C. demand is greater than supply D. supply is greater than demand

Question 17

17The equilibrium price is where

Easy

A. supply is zero B. demand is highest C. quantity demanded equals quantity supplied D. the government sets it

Question 18

18Which is a variable cost?

Easy

A. loan interest B. insurance premium C. rent D. raw materials

Question 19

19A population of 30 million growing at 2% a year will be about how large after 1 year?

Medium

A. 32 million B. 30.6 million C. 30.2 million D. 36 million

Question 20

20Devaluation of a country's currency makes its exports

Medium

A. more expensive abroad B. cheaper abroad C. unchanged in price D. illegal