Economics Fundamentals Quiz
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Questions and Answers

Which of the following best describes the economy?

  • The study of economic behavior among consumers, businesses, and industries
  • The study of how society uses its scarce resources to produce and distribute goods and services
  • The sum total of all economic activity within a given region (correct)
  • The study of a country's larger economic issues
  • What is the main focus of microeconomics?

  • The study of how firms compete and the effect of government policies
  • The study of economic behavior among consumers, businesses, and industries (correct)
  • The study of how society uses its scarce resources to produce and distribute goods and services
  • The study of a country's larger economic issues
  • What is the main focus of macroeconomics?

  • The study of how firms compete and the effect of government policies
  • The study of economic behavior among consumers, businesses, and industries
  • The study of how society uses its scarce resources to produce and distribute goods and services
  • The study of a country's larger economic issues (correct)
  • Which economic system allows individuals and companies to largely decide what products to produce, how to produce them, who to sell to, and at what price to sell them?

    <p>Free-market system</p> Signup and view all the answers

    What is capitalism based on?

    <p>Economic freedom and competition</p> Signup and view all the answers

    Which economic system allows governments to control the allocation of resources and limit freedom of choice?

    <p>Planned system</p> Signup and view all the answers

    What is the study of how society uses its scarce resources to produce and distribute goods and services?

    <p>Microeconomics</p> Signup and view all the answers

    What are the two main areas of study in economics?

    <p>Microeconomics and macroeconomics</p> Signup and view all the answers

    What do we call the rules and policies by which a society allocates its economic resources?

    <p>Economic system</p> Signup and view all the answers

    What are planned systems designed to accomplish?

    <p>Government goals</p> Signup and view all the answers

    Which economic system is characterized by public ownership and operation of key industries combined with private ownership and operation of less-vital industries?

    <p>Socialism</p> Signup and view all the answers

    What does 'nationalizing' refer to?

    <p>The government taking over selected companies or industries</p> Signup and view all the answers

    What does 'privatizing' refer to?

    <p>Turning over services once performed by the government to private businesses</p> Signup and view all the answers

    What is the point of intersection between supply and demand on a graph called?

    <p>Equilibrium point</p> Signup and view all the answers

    What is the economic phase characterized by the decline in a country's GDP for two consecutive quarters?

    <p>Recession</p> Signup and view all the answers

    Which macroeconomic indicator indicates the percentage of the workforce currently without employment?

    <p>Unemployment rate</p> Signup and view all the answers

    What does 'inflation' refer to?

    <p>The steady increase in prices of goods and services</p> Signup and view all the answers

    What does 'deflation' refer to?

    <p>The steady decrease in prices of goods and services</p> Signup and view all the answers

    What does 'CPI' stand for?

    <p>Consumer price index</p> Signup and view all the answers

    What does 'GDP' stand for?

    <p>Gross domestic product</p> Signup and view all the answers

    Which market structure is characterized by numerous sellers offering products that can be distinguished from competing products in at least some small way?

    <p>Monopolistic competition</p> Signup and view all the answers

    Which market structure is characterized by one supplier dominating the market and controlling prices, shutting out other competitors?

    <p>Monopoly</p> Signup and view all the answers

    Which market structure is characterized by a situation where two or more suppliers of a product are rivals?

    <p>Competition</p> Signup and view all the answers

    Which market structure is characterized by a small number of competitors and customers having some choice?

    <p>Oligopoly</p> Signup and view all the answers

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