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