Here are 15 multiple choice questions at the university level about principles of economics:
General
1. What is the fundamental economic problem?
o (A) The problem of scarcity, or the mismatch between unlimited wants and limited resources.
o (B) The problem of efficiency, or the problem of allocating resources in the most productive way.
o (C) The problem of equity, or the problem of distributing resources fairly.
o (D) All of the above.
2. What are the three main economic systems?
o (A) Traditional, command, and market economies.
o (B) Capitalist, socialist, and mixed economies.
o (C) Developed, developing, and underdeveloped economies.
o (D) Agricultural, industrial, and post-industrial economies.
3. What is the law of demand?
o (A) As the price of a good increases, the quantity demanded decreases.
o (B) As the price of a good decreases, the quantity demanded increases.
o (C) The quantity demanded of a good is inversely proportional to its price.
o (D) All of the above.
4. What is the law of supply?
o (A) As the price of a good increases, the quantity supplied increases.
o (B) As the price of a good decreases, the quantity supplied decreases.
o (C) The quantity supplied of a good is directly proportional to its price.
o (D) All of the above.
Microeconomics
5. What is the difference between a perfectly competitive market and a monopoly?
o (A) In a perfectly competitive market, there are many buyers and sellers, while in a monopoly, there is only one seller.
o (B) In a perfectly competitive market, firms have no control over price, while in a monopoly, the firm is the price-maker.
o (C) In a perfectly competitive market, there are no barriers to entry or exit, while in a monopoly, there are high barriers to entry.
o (D) All of the above.
6. What is the difference between producer surplus and consumer surplus?
o (A) Producer surplus is the difference between the price a firm receives for a product and the minimum price it would be willing to accept, while consumer surplus is the difference between the maximum price a consumer would be willing to pay for a product and the price they actually pay.
o (B) Producer surplus is the area below the supply curve and above the market price, while consumer surplus is the area below the demand curve and above the market price.
o (C) Producer surplus is a measure of the benefits that firms receive from producing and selling a product, while
consumer surplus is a measure of the benefits that consumers receive from consuming a product.
o (D) All of the above.
Macroeconomics
7. What is the difference between gross domestic product (GDP) and net domestic product (NDP)?
o (A) GDP is the total value of all final goods and services produced in a country within a given period of time, while NDP is GDP minus depreciation.
o (B) GDP is calculated using the income approach, while NDP is calculated using the expenditure approach.
o (C) GDP is a measure of economic growth, while NDP is a measure of economic well-being.
o (D) All of the above.
8. What is the unemployment rate?
o (A) The percentage of the labor force that is unemployed and actively looking for work.
o (B) The percentage of the labor force that is unemployed and not actively looking for work.
o (C) The percentage of the population that is unemployed.
o (D) All of the above.
9. What is the difference between fiscal policy and monetary policy?
o (A) Fiscal policy is the use of government spending and taxation to influence the economy, while monetary policy is the use of interest rates and the money supply to influence the economy.
o (B) Fiscal policy is a short-term policy, while monetary policy is a long-term policy.
o (C) Fiscal policy is implemented by the government, while monetary policy is implemented by the central bank.
o (D) All of the above.
Challenge Questions
10.Discuss the different types of market failures and how they can be addressed.
11.Explain the role of international trade in the global economy.
12.Discuss the different theories of economic growth.
13.Explain the challenges of economic development and how they can be addressed.
14.Discuss the future of work and the economic implications of automation and artificial intelligence.
I hope these questions are helpful
