Ten Principles of Economics
Quiz by Louisa Cao
Feel free to use or edit a copy
includes Teacher and Student dashboards
Measure skillsfrom any curriculum
Tag the questions with any skills you have. Your dashboard will track each student's mastery of each skill.
- edit the questions
- save a copy for later
- start a class game
- automatically assign follow-up activities based on students’ scores
- assign as homework
- share a link with colleagues
- print as a bubble sheet
- Q1
Which of the following involve a trade-off?
Going to university
Watching a football game on Saturday afternoon
Buying a new car
All of these answers involve trade-offs
120s - Q2
Trade-offs are required because wants are unlimited and resources are
marginal
scarce
economical
unlimited
120s - Q3
Economics is the study of
how society manages its unlimited resources
how to reduce our wants until we are satisfied
how to fully satisfy our unlimited wants.
how society manages its scarce resources
120s - Q4
A rational person does not act unless
none of these answers
the action produces marginal costs that exceed marginal benefits.
the action makes money for the person
the action produces marginal benefits that exceed marginal costs.
120s - Q5
Raising taxes and increasing welfare payments
improves equity at the expense of efficiency
reduces market power
none of these answers
proves that there is such a thing as a free lunch
120s - Q6
Suppose you find €20. If you choose to use the €20 to go to a football match, your opportunity cost of going to the game is
€20(because you could have used the €20 to buy other things) plus the value of your time spent at the game
€20 (because you could have used the €20 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game.
nothing, because you found the money
none of these answers
300s - Q7
Foreign trade
makes a country more equitable.
allows a country to avoid trade-offs.
increases the scarcity of resources.
allows a country to have a greater variety of products at a lower cost than if it tried to produce everything at home.
300s - Q8
Since people respond to incentives, we would expect that, if the average salary of accountants increases by 50% while the average salary of teachers increases by 20%, then
fewer students will take degree courses in education and more will take accounting courses
fewer students will attend university.
none of these answers
fewer students will take degree courses in accounting and more will take education courses.
300s - Q9
Which of the following activities is most likely to produce an externality?
A student eats a hamburger in the student union.
A student reads a novel for pleasure.
A student has a party in her room in the student hall of residence.
A student sits at home and watches T.V.
300s - Q10
Which of the following products would be least capable of producing an externality?
food
cigarettes
take vaccines against disease
education
300s - Q11
Which of the following situations describes the greatest market power?
Subaru’s impact on the price of cars
Microsoft's impact on the price of desktop operating systems
a student's impact on college tuition
a farmer's impact on the price of corn
300s - Q12
Which of the following statements is true about a market economy?
With a large enough computer, central planners could guide production more efficiently than markets.
Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare.
The strength of a market system is that it tends to distribute resources evenly across consumers.
Taxes help prices communicate costs and benefits to producers and consumers.
300s - Q13
Workers in Western Europe enjoy a high standard of living because
the countries of Western Europe have set high minimum wage rates.
workers in the Western Europe are highly productive.
the countries of Western Europe have protected their industries from foreign competition.
unions in Western Europe keep the wage high.
300s - Q14
High and persistent inflation is caused by
regulations raising the cost of production too much.
unions increasing wages too much.
governments increasing the quantity of money too much.
OPEC raising the price of oil too much.
120s - Q15
The Phillips curve shows that
the business cycle has been eliminated.
an increase in inflation temporarily increases unemployment.
inflation and unemployment are unrelated in the short run.
a decrease in inflation temporarily increases unemployment.
300s