Economics Practice Test Questions And Answers

  • What is an economic or productive factor required to accomplish an activity?
    • A.

      Specialization

    • B.

      Resource

    • C.

      Traditional system

    • D.

      Wage

  • 2.
    What is the financial gain made in transactions?
    • A.

      Profit

    • B.

      Resource

    • C.

      Scarcity

    • D.

      Wage

  • 3.
    Name the economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services.
    • A.

      Capitalism

    • B.

      Socialism

    • C.

      Traditional system

    • D.

      Barter system

  • 4.
    The payment made by an employer to an employee is called _____.
    • A.

      Profit

    • B.

      Marginal

    • C.

      Interest

    • D.

      Wage

  • 5.
    The formal organization of producers that agree to coordinate prices and production is called __________.
    • A.

      Cartel

    • B.

      Traditional system

    • C.

      Command system

    • D.

      Corporation

  • 6.
    What are two goods that are bought and used together?
    • A.

      Monopolistic competition

    • B.

      Market system

    • C.

      Complementary goods

    • D.

      Efficiency

  • 7.
    The legal entity owned by individual stockholders is termed as _______.
    • A.

      Capital

    • B.

      Free enterprise

    • C.

      Specialization

    • D.

      Corporation

  • 8.
    The desire to own something and the ability to pay for it called __________.
    • A.

      Demand

    • B.

      Allocation

    • C.

      Capital

    • D.

      Opportunity cost

  • 9.
    The measure used to determine how consumers react to a change in price is termed as _______.
    • A.

      Elasticity

    • B.

      Marginal

    • C.

      Equilibrium price

    • D.

      Scarcity

  • 10.
    The point at which the quantity demanded and the quantity supplied are equal is called ________.
    • A.

      Elasticity

    • B.

      Efficiency

    • C.

      Equilibrium price

    • D.

      Production possibilites

  • 11.
    What is the study of economic behavior and decision makings of small units, such as individuals, families, and businesses called?
    • A.

      Macroeconomics

    • B.

      Microeconomics

    • C.

      Economics

    • D.

      Economic statistics

  • 12.
    Name the market structure in which many companies sell products that are similar but not identical.
    • A.

      Monopoly

    • B.

      Traditional system

    • C.

      Oligopoly

    • D.

      Monopolistic competition

  • 13.
    The KIA plant was built by which country?
    • A.

      North Korea

    • B.

      South Korea

    • C.

      China

    • D.

      USA

  • 14.
    The machines and robots at the KIA plant are an example of ________.
    • A.

      Capital

    • B.

      Economic technology

    • C.

      Specialization

    • D.

      None of the above

  • 15.
    Which country represents a substantial degree of socialism?
    • A.

      Denmark

    • B.

      Canada

    • C.

      United Kingdom

    • D.

      Australia

  • 16.
    Corporations are in business for ________.
    • A.

      Profit

    • B.

      Non-profit

    • C.

      Stockholders

    • D.

      Loss

  • 17.
    At full capacity, the KIA plant should produce ______ vehicles per year.
    • A.

      250,000,000

    • B.

      1 billion

    • C.

      300,000

    • D.

      2 billion

  • 18.
    When a state agrees to lower a tax rate for one corporation so that the corporation builds a plant or factory in that state, it is an example of _____.
    • A.

      Capitalism

    • B.

      Monopolistic competition

    • C.

      Incentive

    • D.

      None of the above

  • 19.
    What is financial compensation in exchange for labor called?
    • A.

      Profit

    • B.

      Wage

    • C.

      Capital

    • D.

      Loss

  • 20.
    When a consumer buys a car from a dealership, this is an example of ______.
    • A.

      Macroeconomics

    • B.

      Microeconomics

    • C.

      Home Economics

    • D.

      Statistics

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