1. What is the main focus of microeconomics?
● A. The entire economy
● B. Individual markets and sections of the economy
● C. Global trade
● D. Government policies
2. What does macroeconomics study?
● A. Choices of individuals
● B. Demand and supply in a single market
● C. Economic behavior and decision-making in the entire economy
● D. The role of Instagram advertising
3. Which system promotes free competition among participants?
● A. Mixed economy
● B. Market system
● C. Planned economy
● D. Government regulation
4. In a mixed economy, resources are owned by:
● A. Both private and public sectors
● B. Only private sectors
● C. Only the government
● D. Non-profit organizations
5. A planned economy is defined by:
● A. Decisions based on government plans
● B. Free-market competition
● C. Complete reliance on supply and demand
● D. Lack of government interference
6. What causes a movement up the demand curve?
● A. An increase in price
● B. A decrease in price
● C. Increased advertising
● D. Reduced production costs
7. What is the law of demand?
● A. Price and quantity demanded have a direct relationship.
● B. Price and quantity demanded have an inverse relationship.
● C. Higher prices always mean more demand.
● D. Advertising does not affect demand.
8. A contraction in quantity demanded occurs when:
● A. Price decreases
● B. Price increases
● C. Supply decreases
● D. Demand increases
9. What does a shift in the demand curve indicate?
● A. A change in price
● B. A change in conditions of demand
● C. A movement along the curve
● D. Stable quantity demanded
10. What leads to an increase in demand without a price change?
● A. Effective advertising
● B. Increased supply
● C. Higher costs of production
● D. A contraction in supply
11. Supply is the amount a producer is willing to supply at a:
● A. Low cost
● B. Random quantity
● C. Short time frame
● D. Given price and period
12. What happens to the quantity supplied when the price decreases?
● A. It increases
● B. It decreases
● C. It remains constant
● D. It depends on demand
13. An extension in supply occurs due to:
● A. Decrease in price
● B. Increase in price
● C. Increase in demand
● D. Reduction in production
14. What does the equilibrium price represent?
● A. Lowest market price
● B. Highest market price
● C. The price at which supply equals demand
● D. A random price decided by buyers
15. What determines equilibrium price?
● A. Government regulations
● B. Producer profits
● C. Demand and supply
● D. Technological advancement
16. What is the basic economic problem?
● A. Scarcity
● B. Inflation
● C. Excess supply
● D. Overproduction
17. Which system fully depends on government plans for decisions?
● A. Planned economy
● B. Market system
● C. Mixed economy
● D. Supply-driven economy
18. Which curve movement results from a price increase?
● A. Downward shift in demand
● B. Contraction of demand
● C. Extension of demand
● D. Extension of supply
19. Which factor does not shift the demand curve?
● A. Change in consumer tastes
● B. Increase in population
● C. Change in consumer income
● D. Change in price
20. What does a mixed economy combine?
● A. Private ownership and government intervention
● B. A planned and market economy
● C. Local and international markets
● D. Free markets and monopolies
21. What happens at the equilibrium point?
● A. Price exceeds supply
● B. Demand equals supply
● C. Demand exceeds supply
● D. Government controls price
22. Which is NOT an agent in an economic system?
● A. External investors
● B. Consumers
● C. Producers
● D. Government
23. Which system prioritizes efficiency and innovation?
● A. Mixed economy
● B. Planned economy
● C. Market system
● D. Command economy
24. What influences decisions in microeconomics?
● A. Price, demand, and supply in individual markets
● B. Government policies
● C. International trade
● D. Central planning
25. What happens when demand shifts to the right?
● A. Supply decreases
● B. Price decreases
● C. Quantity demanded increases
● D. Market equilibrium remains constant
26. What happens to quantity supplied when price increases?
● A. It decreases
● B. It remains constant
● C. It increases
● D. It becomes zero
27. What is a contraction in supply?
● A. Decrease in quantity supplied due to a price drop
● B. Increase in quantity supplied due to a price rise
● C. A shift in the supply curve
● D. Increase in production costs
28. What does the law of demand explain?
● A. The inverse relationship between price and quantity demanded
● B. Direct relationship between price and quantity demanded
● C. No relationship between price and demand
● D. The relationship between advertising and demand
29. What determines the allocation of resources in a market system?
● A. Government intervention
● B. Random decisions
● C. Demand and supply
● D. Environmental policies
30. Which condition will NOT shift the supply curve?
● A. Changes in production technology
● B. Changes in consumer preferences
● C. Changes in input costs
● D. Changes in government policies
31. In which economic system are businesses privately owned?
● A. Mixed economy
● B. Planned economy
● C. Market system
● D. Social economy
32. What is the result of a price decrease in a supply curve?
● A. An extension of supply
● B. A contraction of supply
● C. A shift in the curve
● D. Increased production
33. What is the role of governments in a mixed economy?
● A. Sole production of goods
● B. Solely controlling demand
● C. Influencing production and consumption
● D. Eliminating private enterprises
34. What happens if demand increases but supply remains constant?
● A. Prices fall
● B. Prices rise
● C. Equilibrium remains stable
● D. Quantity supplied decreases
35. What is meant by the "basic economic problem"?
● A. Overproduction in the economy
● B. Lack of consumer demand
● C. Limited resources to meet unlimited wants
● D. Unregulated markets
36. Which is a feature of a planned economy?
● A. Price set by market forces
● B. Government control over financial decisions
● C. Free market competition
● D. Private ownership of businesses
37. What is the result of effective advertising?
● A. Supply increases
● B. Demand curve shifts right
● C. Demand curve shifts left
● D. Equilibrium price falls
38. What causes a shift in the supply curve?
● A. Price changes
● B. Changes in production costs
● C. Changes in quantity demanded
● D. Stable government policies
39. What happens when the price is above the equilibrium point?
● A. Surplus occurs
● B. Shortage occurs
● C. Quantity demanded equals quantity supplied
● D. Supply decreases
40. What leads to a movement along the demand curve?
● A. Change in income
● B. Change in price
● C. Change in preferences
● D. Change in population
