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The Basics of Economics Trivia Quiz

This quiz tests your basic economics. Have fun!

A multiple-choice quiz by cuteelephant. Estimated time: 5 mins.

Author
cuteelephant

Time
5 mins

Type
Multiple Choice

Quiz #
241,946

Updated
Dec 03 21

# Qns
10

Difficulty
Tough

Avg Score
6 / 10

Plays
2722

Last 3 plays: Guest 168 (6/10), gogetem (7/10), AndySed (9/10).

Question 1 of 10

1. Which statement about the factors of production is correct? Hint

Capital is produced by factors of production

Laborers earn profit

Enterprise includes all natural resources

Land is always freely available

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Question 2 of 10

2. Which of the statement below best explains why drought is an economic problem? Hint

Rainfall is a free resource

Water is a scarce resource

The effects of drought involve the government

Weather is part of the factor land

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Question 3 of 10

3. Which of the following is NOT a factor of production? Hint

A farm

A $10 note

A shopkeeper

A printing machine

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Question 4 of 10

4. Commercial companies are reclaiming marshland to construct golf courses. What is the opportunity cost to society? Hint

The expense of installing drainage

The value of the land cleared

The profits of the companies

The natural habitat that is lost

5. A charity sold tickets at $5 each. A ticket was picked and a prize of $100 was given to the owner of the ticket. A student bought a ticket but did not win. What is the opportunity cost to the student? Hint

What could have been bought with $100

$100

What could have been bought with $5

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Question 6 of 10

6. Which company operates in the primary sector? Hint

Delta Gold: a rapidly expanding Australian gold and platinum mining company

Compass East Industries: a Thai ceiling fan manufacturer

Century City: Hong Kong holding company with property and hotel interests

First Bangkok City Bank: a medium-sized commercial Thai Bank

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Question 7 of 10

7. For anything to be used as money, it must be what?
Hint

Readily acceptable

In fixed supply

Fixed in value

Legal tender

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Question 8 of 10

8. The prices of goods remain fixed in the shops of a planned economy, yet in the shops of a neighboring market economy they fluctuate widely. What is the most likely reason for the fluctuation in the market economy? Hint

Producers are more efficient

Buyers and sellers determine prices

Profits are lower

There is higher unemployment

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Question 9 of 10

9. What is more likely to be found in a free market economy than in a planned economy? Hint

An even distribution of income

A high unemployment rate

A wide range of public goods

An incentive to innovate

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Question 10 of 10

10. In countries where government expenditure is typically between 30% and 50% of Gross Domestic Product, which type of economy is in place? Hint

Mixed

Pure market

Planned

Subsistence

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Most Recent Scores

Apr 12 2024 : Guest 168: 6/10
Mar 30 2024 : gogetem: 7/10
Mar 15 2024 : AndySed: 9/10
Mar 14 2024 : Guest 24: 6/10

Score Distribution

Quiz Answer Key and Fun Facts

1. Which statement about the factors of production is correct?

Answer: Capital is produced by factors of production

Factors of production are the scare resources available for use in the production of goods and services to satisfy wants. Capital is a man-made resource.

2. Which of the statement below best explains why drought is an economic problem?

Answer: Water is a scarce resource

An economic problem states that wants are unlimited, while resources are scarce. Scarcity is when choices of resources are limited, which leads to opportunity cost. In this question, water is a scarce resource, which means that not all people have access to water. Opportunity cost is the next best alternative chosen after giving up another.

3. Which of the following is NOT a factor of production?

Answer: A $10 note

A factor of production has to be a type of resource. A farm is land resource, a shopkeeper is labor resource and a printing machine is capital (man-made resource). A $10 note is a type of capital, therefore it is not a factor of production.

4. Commercial companies are reclaiming marshland to construct golf courses. What is the opportunity cost to society?

Answer: The natural habitat that is lost

Opportunity cost is the benefit of the next best alternative foregone because of a particular choice. If you had to choose a green car or a blue car, and you chose the blue car, the green car is the opportunity cost.

Answer: What could have been bought with $5

What could have been bought with $5 dollars is the opportunity cost. If the students didn't buy charity ticket with $5 dollars, he could buy other things with this $5 dollars, such as 2 or 3 chocolate bars.

6. Which company operates in the primary sector?

Answer: Delta Gold: a rapidly expanding Australian gold and platinum mining company

Primary sector means to extract the raw materials from land such as fossil fuels and mining.

7. For anything to be used as money, it must be what?

Answer: Readily acceptable

Many years ago, before paper money was invented, people traded one good for another good. This trade is call barter trade. In order to trade a good with another, the goods have to be acceptable by both sides.

Answer: Buyers and sellers determine prices

In a market economy, the aim of firms is to make as much profits as possible. In order to do this, they have to know what their consumers want and produce as their consumers want.

9. What is more likely to be found in a free market economy than in a planned economy?

Answer: An incentive to innovate

In a free market economy, people who work hard will have bonus income while in a planned economy, no matter how hard you work, you will receive the same amount of income as others.

10. In countries where government expenditure is typically between 30% and 50% of Gross Domestic Product, which type of economy is in place?

Answer: Mixed

A mixed economy will have equal to or less than 50% of expenditures by the government. This is when firms are owned by both the private and public sector. Therefore, the government's ownership must not exceed 50%.

Source: Author cuteelephant

This quiz was reviewed by FunTrivia editor trident before going online.
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