Question 1/12
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In an average situation, when the price of a commodity falls, the quantity demanded will _______________.
not change
increase
decrease
Question 2/12
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For most people, the largest portion of their personal income comes from:
interest from stocks and bonds.
home equity.
wages and salaries.
Question 3/12
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If the CPI in 2000 is 100 and the CPI in 2008 is 110, there has been:
minor inflation
minor deflation
stagflation
Question 4/12
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If the price of beef doubled and the price of poultry stayed the same, what would buying habits of consumers change to be?
They would buy more poultry and less beef.
They would buy less of both poultry and beef.
They would buy less poultry and more beef.
Question 5/12
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What do we call a person who starts a business to produce a new product in the marketplace?
bureaucrat
stock manager
entrepreneur
Question 6/12
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When a person purchases a commodity, he or she will purchase the __________ priced commodity, as long as the commodities offered are identical in all other respects.
medium
highest
lowest
Question 7/12
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Why are transfer payments not a component of GDP?
They are negligible in size and scope
They do not generate wealth
They only measure the government's impact on GDP
Question 8/12
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An increase from 5% to 8% in the interest rates charged by banks would most likely encourage:
the purchasing of houses
investments by businesses
the saving of money
Question 9/12
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Which of the following describes a monopoly?
When there is only one seller
When there is only one buyer
When there is no inflation
Question 10/12
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What is the effect of a price ceiling in the long run?
inflation
shortages
surpluses
Question 11/12
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What is the single most important factor that makes the markets work?
money
leadership
control
Question 12/12
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Which of the following is not a component of demand?
exports
transfer payments
government spending
Well, there's a reason we have people in the world whose job it is to inform us about economics - not everyone can be well-educated on the subject. You should try to bone up on this knowledge though, that way you don't have to trust the word of others!
C+, Economic Error
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Right!
While you may have been stumped by a few of the tougher questions on this quiz, you've proved you're overall pretty educated when it comes to the economy and economics as a whole. Great work!
B+, Educated In Economics
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Right!
Your economics knowledge is unrivaled! There was a wide variety of questions on this quiz, but you could not be stumped. Do you work on Wall Street or something? Either way, great work!
A+, Economics Expert
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Right!
Check Your Answers
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Are you an economics expert? If you think you are, take our quiz to find out!
1
In an average situation, when the price of a commodity falls, the quantity demanded will _______________.
not change
increase
decrease
2
For most people, the largest portion of their personal income comes from:
interest from stocks and bonds.
home equity.
wages and salaries.
3
If the CPI in 2000 is 100 and the CPI in 2008 is 110, there has been:
minor inflation
minor deflation
stagflation
4
If the price of beef doubled and the price of poultry stayed the same, what would buying habits of consumers change to be?
They would buy more poultry and less beef.
They would buy less of both poultry and beef.
They would buy less poultry and more beef.
5
What do we call a person who starts a business to produce a new product in the marketplace?
bureaucrat
stock manager
entrepreneur
6
When a person purchases a commodity, he or she will purchase the __________ priced commodity, as long as the commodities offered are identical in all other respects.
medium
highest
lowest
7
Why are transfer payments not a component of GDP?
They are negligible in size and scope
They do not generate wealth
They only measure the government's impact on GDP
8
An increase from 5% to 8% in the interest rates charged by banks would most likely encourage:
the purchasing of houses
investments by businesses
the saving of money
9
Which of the following describes a monopoly?
When there is only one seller
When there is only one buyer
When there is no inflation
10
What is the effect of a price ceiling in the long run?
inflation
shortages
surpluses
11
What is the single most important factor that makes the markets work?
money
leadership
control
12
Which of the following is not a component of demand?
exports
transfer payments
government spending
