Basic Economics Concepts
Difficulty: medium. 10 questions.
About this quiz
Everything you need to know before you start
Questions Preview
Showing 5 of 10 questions — take the quiz to answer them all
- 1
What is the basic economic problem?
- ALimited wants and unlimited resources
- BUnlimited wants and limited resources
- CUnlimited wants and unlimited resources
- DLimited wants and limited resources
- 2
Which of the following best describes 'opportunity cost'?
- AThe monetary cost of a decision.
- BThe value of the next best alternative forgone.
- CThe cost of production.
- DThe total cost of all alternatives.
- 3
What does a production possibilities frontier (PPF) represent?
- AThe minimum level of production an economy must achieve.
- BThe various combinations of goods and services an economy can produce efficiently with its available resources.
- CThe maximum profit a firm can make.
- DThe total demand for goods and services in an economy.
- 4
Which of the following is NOT a factor of production?
- ALabor
- BLand
- CMoney
- DCapital
- 5
What is 'inflation'?
- AA sustained increase in the general price level.
- BA decrease in the general price level.
- CA measure of unemployment.
- DA period of economic recession.