TEST MCQ SKILLS

This is a timed quiz. You will be given 600 seconds to answer all questions. Are you ready?

600

What is the best definition of an economic good?

Goods that are very expensive

Goods that are in scarce or limited supply

Goods that a country produces and then trades to another county

Goods that are vital to an individual's welfare

Correct! Wrong!

Land, labor, and capital are:

Available only in finite amounts

The primary factors of production

Used to produce outputs

All of the above

Correct! Wrong!

Which of the statements below does not apply to the production-possibility frontier, or PPF?

The PPF is closely related to the concept of scarcity

Quantities of inputs are measured along the axes of the PPF

The PPF may shift over time

Movements along the PPF may occur as the allocation of resources changes

Correct! Wrong!

Government’s role in a modern economy is to:

Ensure efficiency

Correct an unfair distribution of income

Promote economic growth and stability

All of the above

Correct! Wrong!

Which of the following is an appropriate economic goal for government in a mixed economy?

Improving economic efficiency

Reducing economic inequality

Stabilizing the economy through macroeconomic policies

All of the above

Correct! Wrong!

Which of the following statements is false when an economy is on its PPF?

More of one product cannot be produced without sacrificing some of the other

Resources are fully employed

Consumers will have all that they need

A strike by workers will move the economy beneath the PPF

Correct! Wrong!

Economic policies can be designed to fight which of the following economic problems?

Inflation

Unemployment

Trade imbalance

All of the above

Correct! Wrong!

Which of the following may have been considered a free good today?

Land

Cattle

Computers

Air

Correct! Wrong!

Which of the following statements could be used to explain an outward shift in the production-possibility frontier?

There is an increase in technology

The population of the country increases

New natural resources are discovered under the ocean

All of the above apply

Correct! Wrong!

The subject of economics includes:

the study of wealth

The study of people in ordinary business life, earning and enjoying life

the study of the allocation of scarce resources to the production and distribution of goods and services.

All of the above

Correct! Wrong!

Fundamental Economic Concepts - Quiz 2

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