📌 Economics Common questions on micro and macro economics
Instructions: Choose the best answer for each question.
1. Which of the following is a core concept in macroeconomics?
a) Supply and demand
b) Market equilibrium
c) National income
d) Consumer behavior
Answer: c) National income
2. What is the primary focus of microeconomics?
a) The behavior of individual consumers and firms
b) The overall performance of the economy
c) The role of government in the economy
d) The effects of international trade
Answer: a) The behavior of individual consumers and firms
3. Which of these is NOT a key macroeconomic indicator?
a) Inflation rate
b) Unemployment rate
c) Gross Domestic Product (GDP)
d) Market share of a particular company
Answer: d) Market share of a particular company
4. What is the difference between a recession and a depression?
a) A recession is a short-term downturn, while a depression is a prolonged and severe downturn
b) A recession is caused by inflation, while a depression is caused by deflation
c) A recession affects only a few industries, while a depression affects all industries
d) There is no difference; the terms are interchangeable
Answer: a) A recession is a short-term downturn, while a depression is a prolonged and severe downturn
5. What is the main goal of monetary policy?
a) To regulate the money supply and interest rates
b) To control government spending and taxation
c) To promote fair competition in the marketplace
d) To protect consumer rights
Answer: a) To regulate the money supply and interest rates
6. What is the main goal of fiscal policy?
a) To regulate the money supply and interest rates
b) To control government spending and taxation
c) To promote fair competition in the marketplace
d) To protect consumer rights
Answer: b) To control government spending and taxation
7. What is the concept of opportunity cost?
a) The cost of producing a good or service
b) The value of the next best alternative forgone
c) The cost of borrowing money
d) The cost of living
Answer: b) The value of the next best alternative forgone
8. What is the law of supply?
a) As the price of a good increases, the quantity supplied decreases
b) As the price of a good increases, the quantity supplied increases
c) As the price of a good decreases, the quantity demanded increases
d) As the price of a good decreases, the quantity demanded decreases
Answer: b) As the price of a good increases, the quantity supplied increases
9. What is the law of demand?
a) As the price of a good increases, the quantity demanded decreases
b) As the price of a good increases, the quantity demanded increases
c) As the price of a good decreases, the quantity demanded increases
d) As the price of a good decreases, the quantity demanded decreases
Answer: a) As the price of a good increases, the quantity demanded decreases
10. What is market equilibrium?
a) The point where supply and demand are equal
b) The point where prices are at their highest
c) The point where profits are maximized
d) The point where production is maximized
Answer: a) The point where supply and demand are equal
11. What is the difference between a price floor and a price ceiling?
a) A price floor is a minimum price, while a price ceiling is a maximum price
b) A price floor is a maximum price, while a price ceiling is a minimum price
c) A price floor is set by the government, while a price ceiling is set by the market
d) A price floor is set by the market, while a price ceiling is set by the government
Answer: a) A price floor is a minimum price, while a price ceiling is a maximum price
12. Which of the following is a characteristic of a perfectly competitive market?
a) Many sellers, each with a small market share
b) Homogeneous products
c) Free entry and exit
d) All of the above
Answer: d) All of the above
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Instructions: Choose the best answer for each question.
1. Which of the following is a core concept in macroeconomics?
a) Supply and demand
b) Market equilibrium
c) National income
d) Consumer behavior
Answer: c) National income
2. What is the primary focus of microeconomics?
a) The behavior of individual consumers and firms
b) The overall performance of the economy
c) The role of government in the economy
d) The effects of international trade
Answer: a) The behavior of individual consumers and firms
3. Which of these is NOT a key macroeconomic indicator?
a) Inflation rate
b) Unemployment rate
c) Gross Domestic Product (GDP)
d) Market share of a particular company
Answer: d) Market share of a particular company
4. What is the difference between a recession and a depression?
a) A recession is a short-term downturn, while a depression is a prolonged and severe downturn
b) A recession is caused by inflation, while a depression is caused by deflation
c) A recession affects only a few industries, while a depression affects all industries
d) There is no difference; the terms are interchangeable
Answer: a) A recession is a short-term downturn, while a depression is a prolonged and severe downturn
5. What is the main goal of monetary policy?
a) To regulate the money supply and interest rates
b) To control government spending and taxation
c) To promote fair competition in the marketplace
d) To protect consumer rights
Answer: a) To regulate the money supply and interest rates
6. What is the main goal of fiscal policy?
a) To regulate the money supply and interest rates
b) To control government spending and taxation
c) To promote fair competition in the marketplace
d) To protect consumer rights
Answer: b) To control government spending and taxation
7. What is the concept of opportunity cost?
a) The cost of producing a good or service
b) The value of the next best alternative forgone
c) The cost of borrowing money
d) The cost of living
Answer: b) The value of the next best alternative forgone
8. What is the law of supply?
a) As the price of a good increases, the quantity supplied decreases
b) As the price of a good increases, the quantity supplied increases
c) As the price of a good decreases, the quantity demanded increases
d) As the price of a good decreases, the quantity demanded decreases
Answer: b) As the price of a good increases, the quantity supplied increases
9. What is the law of demand?
a) As the price of a good increases, the quantity demanded decreases
b) As the price of a good increases, the quantity demanded increases
c) As the price of a good decreases, the quantity demanded increases
d) As the price of a good decreases, the quantity demanded decreases
Answer: a) As the price of a good increases, the quantity demanded decreases
10. What is market equilibrium?
a) The point where supply and demand are equal
b) The point where prices are at their highest
c) The point where profits are maximized
d) The point where production is maximized
Answer: a) The point where supply and demand are equal
11. What is the difference between a price floor and a price ceiling?
a) A price floor is a minimum price, while a price ceiling is a maximum price
b) A price floor is a maximum price, while a price ceiling is a minimum price
c) A price floor is set by the government, while a price ceiling is set by the market
d) A price floor is set by the market, while a price ceiling is set by the government
Answer: a) A price floor is a minimum price, while a price ceiling is a maximum price
12. Which of the following is a characteristic of a perfectly competitive market?
a) Many sellers, each with a small market share
b) Homogeneous products
c) Free entry and exit
d) All of the above
Answer: d) All of the above
@Ethioquizzes
@Ethiomatrichub
@Ethiomatrics