29 Questions
What is the primary focus of the study of economics?
Navigating tradeoffs to deploy limited means towards desired ends
Who is credited with the development of macroeconomics as a separate branch of economics?
John Maynard Keynes
What is the term used to describe the economic condition, status, and activities of a geographical area or country?
Economy
What is the primary concern of the classical tradition in economics?
Full employment and full capacity of factories
What is the year in which Lionel Robbins published his essay on the nature and significance of economic science?
1932
What is the term used to describe the study of how humans make decisions about resource allocation?
Economics
What is the primary function of the tertiary sector?
Providing commercial services to the general population and businesses
Which of the following industries is typically associated with the secondary sector?
Aerospace manufacturing
What is another term for the quaternary sector?
Knowledge economy
Which of the following activities is typically associated with the quinary sector?
Top-level decision-making
What is an example of an industry that is part of the primary sector?
Fishing
Which of the following sectors includes activities such as culture, libraries, and scientific research?
Quaternary sector
What is the main purpose of government intervention in the economy according to Keynesian economists?
To achieve full employment and price stability
What does the term 'animal spirits' refer to in the context of economics?
Human emotions that affect consumer confidence
According to Keynes, what is the primary basis for investment and consumption decisions?
Human emotions and feelings about the economy
What is the primary characteristic of Economic Goods?
They are limited in availability and man-made
Which of the following is a criticism of the concept of 'animal spirits'?
It cannot sufficiently explain economic cycles
What is the primary focus of macroeconomics?
Determination of aggregate output and general price level
What is the purpose of Producer Goods?
To produce other goods and services
What is the main difference between Public Goods and other types of goods?
They are non-rivalrous and non-exclusive
Which of the following statements about macroeconomics is correct?
It has a wide scope, encompassing a state, country, or even global economy
What is the definition of Consumer Goods?
Any tangible thing produced and then purchased by final users to satisfy their needs
What is the characteristic of Free Goods?
They have value in use but not in exchange
What is the definition of Capital Goods?
Tangible and physical goods used in further production
What happens to the demand of inferior goods when the income of consumers increases?
It decreases
What is the nature of the relationship between the price of one good and the demand of its substitute good?
Negative
Which of the following pairs of goods are complementary goods?
Car and Petrol
What is the term for a commodity that is used by the consumer to satisfy current wants or needs?
Final Good
What is the characteristic of normal goods?
Demand increases with increase in income
Test your understanding of microeconomics concepts, including inferior goods, normal goods, substitute goods, and complementary goods. Learn how consumer behavior changes with income and how different goods relate to each other.
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