1. Introduction to Economics

What Is Economics — Quiz

Test your understanding of what is economics with 5 practice questions.

Practice Questions

Question 1

Which of the following economic concepts is most directly challenged by the existence of 'free goods'?

Question 2

In a perfectly rational economic model, how would an individual allocate their time between two activities, A and B, if the marginal benefit of activity A is $\text{MB}_A = 10 - 2x$ and the marginal benefit of activity B is $\text{MB}_B = 8 - x$, where $x$ is the hours spent on activity A, and the total time available is $5$ hours?

Question 3

Which of the following statements best distinguishes between 'needs' and 'wants' in economic theory?

Question 4

The concept of 'economic rent' is most closely associated with which of the following economic principles?

Question 5

If a country's production possibility frontier (PPF) shifts outwards, but the proportion of capital goods to consumer goods produced remains constant, what can be inferred about the economic growth?