Q.1
Buyers choose what items are produced based on their spending habits
  • Consumer Sovereignty
  • Factors of Production
  • Efficiency
  • Cost / Benefit Analysis
Q.2
A economist who introduced the steady increase of the supply of money within growing economies.
  • David Ricardo
  • John Maynard Keynes
  • Milton Friedman
  • Beatrice Webb
Q.3
Competition and profit motive are important characteristics of a:
  • command economy
  • traditional economy
  • market economy
  • socialist economy
Q.4
The amount of money a business makes after its expenses are paid
  • profit
  • supply
  • demand
  • scarcity
Q.5
Which type of economy has central ownership, the government, and lack of individual choice?
  • Market
  • Mixed
  • Command
  • Traditional
Q.6
Which type of economy is usually paired with a Communist government?
  • Mixed
  • Market
  • Command
  • Traditional
Q.7
Who invented communism?
  • Plato
  • Karl Marx
  • Paul Samuelson
  • Adam Smith
Q.8
Which of the following are markets involved in the circular flow model?
  • Factor Market and Resource Market
  • Labor Market and Product Market
  • Factor Market and Product Market
  • Resource Market and Labor Market
Q.9
Which two groups of people are represented in the circular flow model?
  • Buyers and Sellers
  • Producers and Consumers
  • Government and Private Individuals
  • Households and Businesses
Q.10
This means that the government should not interfere in the marketplace.
  • Laissez Faire
  • Capitalism
  • Communism
  • Socialism
Q.11
Capitalism is in what type of economy?
  • Traditional
  • Command
  • Market
  • Authortarian
Q.12
When customers and business owners exchange products and money, because it will help them both in some way.
  • voluntary exchange
  • volunteering to help someone for free
  • opportunity cost
  • reading quizzes
Q.13
When two goods are perfect complementary, the indifference curve is:
  • A straight line
  • U shaped
  • L – shaped
  • Circular in shape.
Q.14
At equilibrium, the slope of the indifference curve is:
  • Equal to the slope of budget line
  •  Greater than the slope of budget line
  • Smaller than the slope of budget line
  • None of these
Q.15
Marginal utility approach was given by:
  • (a) J.R. Hicks
  • (b) Alfred Marshall
  • (c) Robbins
  • (d) A.C. Pigou
Q.16
Indifference curves between income and leisure for an individual are generally:
  • Concave to the origin
  • Convex to the origin
  • Negatively sloped straight lines
  • Positively sloped straight lines
Q.17
Indifference curves never intersect each other due to:
  • Different levels of satisfaction
  • Same levels of satisfaction
  • Convex to origin
  • Concave to origin
Q.18
---------------- shows various combinations of two products that give same amount of satisfaction:
  • (a) ISO cost curve
  • (b) Indifference curve
  • (c) Marginal utility curve
  • (d) ISO quant
Q.19
A budget constraints line is a result of:
  • Market price of commodity X
  • Market price of commodity Y
  • Income of the consumer
  • All of these
Q.20
The difference between what a consumer is ready to pay and what he actually pays is:
  • Consumer Surplus
  • Consumer deficit
  • Both
  • None
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