Solution to EQ - Quiz I- 2017-18

ANDREAN ECONOMICS ASSOCIATION – FY CHAPTER - 2017-18

Check Your EQ – Quiz I SOLVED

1. What are the four factors of
B. Land, capital, labor, entrepreneurs

2. When a government's expenses for a year are higher than its revenue for that year, the difference is known
C. Budget deficit   

3. If the United States stopped importing cars from Japan, who would most likely benefit?
B. American automakers   

4. Which of the following are most likely to be helped by
C. People who borrowed money at fixed interest rates

5. Which of the following statements about money is
C. It makes buying and selling easier    

6. The stock market is an example of an institution that exists to help people achieve their goals. The existence of the stock
C. Brings together buyers and sellers of stocks

7. If interest rates charged by banks decreased, business would be most likely A. Increase investment spending          

8. A person who starts a business to produce a new product is known in the marketplace as
C. entrepreneur  

9. A large increase in the cost of producing jeans is most likely to result
B. Higher jean prices and fewer jeans bought

10. Since the resources used in the production of goods and services are limited, society
D. Make choices about how to use resources

11. In India, who determines what goods and services will be
D. Producers, consumers, and government

12. If the price of fish doubled and the price of poultry stayed the same, people would most likely
B. More poultry and less fish

13. When a person rents an apartment, who benefits from the transaction?

C. Both the renter and the landlord     

14. For most people, the largest portion of their personal income comes from:

C. Wages and salaries from their jobs  

15. What is PPF?

B. Production Possibilities Frontier

16. Name the three types of taxes.

D. Progressive, proportional, regressive

17. What does the term "Laissez Faire"
A. The philosophy that government should not interfere with business activity

18. What is Scarcity?

C. The condition that results from society not having enough resources to produce all the things people would like to have

19. What do the points along the PPF represent?
A. Maximum combination of output if all resources are fully employed

20. What does the word utility mean?

C. Ability or capacity of a good or service to be useful and give satisfaction to someone

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