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