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D) Identifying Ways To Make Society Fairer

This document contains an 11 question quiz on introductory economics concepts. It covers topics like the role of economists, why exchange exists, who Adam Smith was, what economic problems are, how opportunity cost is defined, what a mixed economy is, and the difference between positive and normative statements. The questions test understanding of foundational economic ideas like specialization and division of labor, scarcity, price mechanisms, and economic analysis.

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48 views2 pages

D) Identifying Ways To Make Society Fairer

This document contains an 11 question quiz on introductory economics concepts. It covers topics like the role of economists, why exchange exists, who Adam Smith was, what economic problems are, how opportunity cost is defined, what a mixed economy is, and the difference between positive and normative statements. The questions test understanding of foundational economic ideas like specialization and division of labor, scarcity, price mechanisms, and economic analysis.

Uploaded by

Shikha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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QUIZ 1 Introduction to Economics

1. Which statement does not relate to the role of the economist?


a) Forecasting the effects of a change in government policy.
b) Measuring general changes in the price level.
c) Attempting explain the causes of economic phenomenon
d) Identifying ways to make society fairer.

2. The need for exchange exists because


A) Consumers have both needs and wants
B) Free goods have no opportunity cost
C) Specialization and division of labor exists
D) Unemployment will fall as a result of exchange

3. Adam Smith was


A) A Scottish economist
B) An American political philosopher
C) An English poet
D) A welsh geologist

4. Which statement best describes economic problems?


a) The fact that economies often go in recession
b) Matching unlimited wants with limited resources
c) The problem that high exchange rates deter exports
d) Having high levels of unemployment

5. Adam Smith the founding father of economics, linked the price mechanism to;
a) a computer
b) a machine
c) a herd of animals
d) an invisible hand

6. Opportunity cost is best defined as:

a) The cost of a decision expressed in terms of the next best alternative.

b) How an economy suffers when in a recession

c) The financial costs association with the production of goods and services.

d) The cost of a decision expressed in monetary terms.

7. A mixed economy is an economy in which?


a) The government commands how all resources are used.

b) There are periods of growth and recession.

c) Resources are allocated through the price mechanism and government.

d) All resources are allocated through the price mechanism.

8. A positive statement is one which:

a) Cannot be tested or verified.

b) Is based on opinion

c) Can be tested or verified

d) Is based on a value judgment

9. Which of the following is a positive statement?

a) Rising prices can encourage production.

b) Falling prices can encourage consumer spending

c) An increase in the prices of houses will affect real incomes

d) Falling prices are good for consumers.

10. Which of the following is a positive statement?

a) The role of economist is of increasing importance.

b) some scarce resource are better left unused.

c)students should be given greater financial support when they go to university.

d) The rate of growth in 2007 was greater than in 2018.

11. Which of the following statements is normative?

a) Poverty is something society should reduce.

b) Not all resources experience price rises.

C) An increase I house prices is likely to lead in a reduction in demand.

d) Some of the earth’s scarce resources are non renewable.

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