Elements Of Pure Economics, Or, The Theory Of Social Wealth
  • 1. Who is considered the father of modern economics?
A) Adam Smith
B) John Maynard Keynes
C) Karl Marx
D) David Ricardo
  • 2. Which of the following is a basic economic problem?
A) Inflation
B) Scarcity
C) Surplus
D) Inequality
  • 3. What does GDP stand for?
A) Gross Domestic Product
B) General Debt Projection
C) Global Development Plan
D) Gross Domestic Purpose
  • 4. Which term refers to the benefit gained from the next best alternative forgone?
A) Marginal cost
B) Opportunity cost
C) Sunk cost
D) Fixed cost
  • 5. What are the three main factors of production?
A) Money, resources, labor
B) Land, labor, capital
C) Capital, technology, entrepreneurship
D) Goods, services, trade
  • 6. What does the law of demand state?
A) Price and quantity demanded are directly related
B) Supply increases as demand decreases
C) Demand is constant regardless of price
D) Price and quantity demanded are inversely related
  • 7. Which concept refers to the additional benefit derived from consuming one more unit?
A) Fixed utility
B) Marginal utility
C) Total utility
D) Average cost
  • 8. Who proposed the theory of comparative advantage?
A) David Ricardo
B) John Stuart Mill
C) Adam Smith
D) Milton Friedman
  • 9. What does 'monetary policy' refer to?
A) Control of the money supply and interest rates
B) Trade agreements with other nations
C) Government spending on public services
D) Regulation of fiscal policies
  • 10. Which market structure is characterized by a single seller?
A) Perfect competition
B) Monopolistic competition
C) Monopoly
D) Oligopoly
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