Topic 1 Quiz PDF
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This is a quiz on economics, covering fundamental concepts such as opportunity cost, trade-offs, and the allocation of resources in a market economy. The quiz tests understanding of key economic ideas, providing a good base for further learning.
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TOPIC 1 - QUIZ 1\. \*\*What does economics study?\*\* \- a) Human behavior related to unlimited resources \- b) The use of scarce resources to fulfill unlimited wants \- c) How to accumulate wealth 2\. \*\*Why is studying economics important?\*\* \- a) To learn how to manage a business \- b)...
TOPIC 1 - QUIZ 1\. \*\*What does economics study?\*\* \- a) Human behavior related to unlimited resources \- b) The use of scarce resources to fulfill unlimited wants \- c) How to accumulate wealth 2\. \*\*Why is studying economics important?\*\* \- a) To learn how to manage a business \- b) To understand the economy of a single country \- c) To learn a way of thinking and make informed decisions 3\. \*\*What is the concept of \"trade-off\" in economics?\*\* \- a) Making choices to gain both options \- b) Giving up one thing to obtain another \- c) Getting everything without sacrificing anything 4\. \*\*What is \"opportunity cost\"?\*\* \- a) The money you spend on goods and services \- b) The cost of a missed opportunity to make a profit \- c) What you give up to obtain something else 5\. \*\*How do rational people think according to economics?\*\* \- a) They make decisions randomly \- b) They think at the margin by making incremental changes \- c) They focus only on the cost of goods 6\. \*\*What motivates people to make economic decisions?\*\* \- a) Traditions and beliefs \- b) The marginal benefits and costs of alternatives \- c) Only the cost of labor 7\. \*\*What is one advantage of trade?\*\* \- a) It creates more jobs in the domestic market \- b) It allows people to specialize and gain more from trading \- c) It limits competition in the market 8\. \*\*How are resources allocated in a market economy?\*\* \- a) By government control and regulation \- b) By central planning authorities \- c) Through decentralized decisions of firms and households 9\. When does market failure occur? \- a) When resources are allocated efficiently \- b) When a single firm controls market prices \- c) When the market fails to allocate resources efficiently 10\. What are the two major divisions of economics? \- a) Public and private economics \- b) Microeconomics and macroeconomics \- c) Theoretical and applied economics
