Principles of Economics MCQs
Principles of Economics MCQs
Answer these Principles of Economics MCQs and see how sharp is your knowledge of Principles of Economics. Scroll down and let's start!
1: The vertical intercept of the consumption function equals ______ and the slope equals _____.
A. The mpc;autonomous consumption
B. Autonomous consumption;the mpc
C. The unplanned component of consumption;the planned component of consumption
D. The planned component of consumption;the unplanned component of consumption
2: A ______________________ means that government spending and taxes are equal.
A. Fiscal budget.
B. Balanced budget.
C. Contractionary fiscal policy.
D. Discretionary fiscal policy
3: Expansionary monetary policy refers to the ________ to increase real gdp.
A. Government's increasing spending and lowering taxes
B. Government's decreasing spending and raising taxes
C. Federal reserve's increasing the money supply and decreasing interest rates
D. Federal Reserve's decreasing the money supply and increasing interest rates
4: As the demand for goods and services increases, job growth _____.
A. Increases
B. Decreases
C. Remains the same
D. None of the above.
5: Deadweight loss is the decrease in _____ that results from an inefficient _____ or _____.
A. Total​ surplus; market​ price; marginal cost
B. Producer​ surplus; overproduction; subsidy
C. Total​ surplus; underproduction; overproduction
D. Consumer​ surplus; underproduction; tax
6: What is the basic economic problem?
A. Scarcity
B. Inflation
C. Unemployment
D. Economic growth
7: Which of the following is NOT considered a factor of production in economics?
A. Land
B. Labor
C. Money
D. Capital
8: What does the law of demand state?
A. As the price of a good increases, the quantity demanded increases.
B. As the price of a good decreases, the quantity demanded decreases.
C. As the price of a good increases, the quantity demanded decreases.
D. As the price of a good decreases, the quantity demanded increases.
9: In economics, what is the opportunity cost?
A. The actual cost of a good or service
B. The cost of production
C. The highest-valued alternative that is given up to choose another option
D. The total cost of all alternatives
10: What is the term for a market structure with a large number of sellers and buyers, with no individual seller or buyer having a significant impact on the market price?
A. Monopoly
B. Oligopoly
C. Perfect competition
D. Monopolistic competition
11: What does the law of supply state?
A. As the price of a good increases, the quantity supplied increases.
B. As the price of a good decreases, the quantity supplied decreases.
C. As the price of a good increases, the quantity supplied decreases.
D. As the price of a good decreases, the quantity supplied increases.
12: What is the term for the total value of all goods and services produced within a country in a given time period?
A. Gross Domestic Product (GDP)
B. Consumer Price Index (CPI)
C. Inflation rate
D. Unemployment rate
13: In economics, what is inflation?
A. A decrease in the general price level of goods and services
B. An increase in the quantity of money in circulation
C. A sustained increase in the general price level of goods and services over time
D. A decrease in the unemployment rate
14: What does the law of diminishing marginal utility state?
A. As the quantity of a good consumed increases, the total utility increases at a decreasing rate.
B. As the quantity of a good consumed increases, the total utility increases at a constant rate.
C. As the quantity of a good consumed increases, the total utility remains constant.
D. As the quantity of a good consumed increases, the total utility decreases.
15: What is the term for the government's use of taxation and expenditure policies to control the economy?
A. Fiscal policy
B. Monetary policy
C. Supply-side policy
D. Trade policy
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Principles of Economics MCQs
