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Economics Quiz With Answers

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1. Economics is the study of

A) Production technology

B) Consumption decisions

C) how society decides what, how, and for whom to produce

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2. A resource is scarce if supply exceeds demand at zero price

A) True

B) False

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3. The opportunity cost of a good is

A) the time lost in finding it

B) the quantity of other goods sacrificed to get another unit of that good

C) the expenditure on the good

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4. A market can accurately be described as

A)a place to buy things

B) a place to sell things

C) the process by which prices adjust to reconcile the allocation of resources

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5. In a free market __________ ___________

A) governments intervene

B) governments plan production

C) governments interfere

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6. A command economy decides resource allocation by government planning

A) True

B) False

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7. A demand curve can shift because of changing

A) incomes

B) price of people

C) All the above

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8. Supply is the quantity of a good sellers wish to sell each time the market opens

A) True

B) False

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9. To find the percentage change in a number, divide the absolute change by the original number and multiply by 100

A) True

B) False

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10. Index numbers express base data in relation to some relative value

A) True

B) False