Economics Exam Questions and Answers for Test Preparation
Our economics exam questions and answer provide students the necessary preparation for their test. We understand the level of stress that goes along studying for an exam which is why we make sure to provide the best academic support. You can practice your expertise on various economics areas using our pre test sample. You can find a lot of useful information about preparation test and e.g. check out physics practical exam questions for preparation and it will really help you to be ready.
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The following are economics exam questions and answer that will test your skills in econ concepts and problems:
- Which of the following is the underlying reason for the law of increasing opportunity cost?
- Higher prices cause production of all goods to increase.
- Capital goods cannot be divided into smaller units.
- Resources are scarce.
- Resources are not equally suited to the production of all goods. (Answer)
- Suppose that oranges and apples are close substitutes. If the price of apples decreases, the equilibrium price and quantity of oranges are expected to change in which of the following ways?
- Increase, increase
- Increase, decrease
- No change, decrease
- Decrease, decrease (Answer)
- When the price of a product increases, a consumer’s real income decreases, causing the consumer to decrease the quantity of the product demanded. This is known as
- the substitution effect
- the income effect (Answer)
- income elasticity
- cross-price elasticity
- A profit-maximizin
g firm will shut down in the short run if
- marginal cost is greater than average total cost
- marginal cost is equal to average total cost
- price is less than average total cost
- price is less than average variable cost (Answer)
- Which of the following is true of the marginal factor cost for a firm hiring labor in a perfectly competitive labor market?
- It is constant and equal to the market wage rate. (Answer)
- It is greater than the market wage rate.
- It is less than the market wage rate.
- It increases as the number of workers hired increases.
- In a competitive market, when a negative externality exists, the private market produces
- more than the socially optimum level because the marginal social cost is less than the marginal private cost
- more than the socially optimum level because the marginal social cost is greater than the marginal private cost (Answer)
- less than the socially optimum level because the marginal social benefit is less than the marginal private benefit
- less than the socially optimum level because the marginal private benefit is greater than the marginal external cost
- Antitrust laws are designed mainly to
- protect businesses from unfair foreign competition
- facilitate mergers of firms to increase efficiency
- regulate prices charged by natural monopolies
- promote a competitive market environment (Answer)
- Who gains in a voluntary trade?
- The buyer only.
- The seller only.
- Both the buyer and the seller. (Answer)
- Both the buyer and the seller, but the seller usually gains more.
- When individuals increase their personal wealth through production and exchange, they:
- Reduce the wealth of others.
- Must rely heavily on government intervention and regulation.
- Increase the wealth of others. (Answer)
- Must be selfish and greedy.
- The pursuit of profit will
- Encourage firms to produce efficiently and keep their costs low.
- Encourage firms to produce goods and services that consumers value highly relative to costs.
- Discover and develop better products and lower-cost production methods.
- All of the above are correct. (Answer)
Learn More How to Get Study Tips and Free Economics Pre-Test
There are many approaches when it comes to studying for a test but by using correct preparation, you can perform better and have better scores. Here are top 5 suggestion exam preparation tips that are a definite help for students:
- Tests are announced days ahead so allot time to study every day for at least an hour. Avoid cramming as this cause stress and hassle to students.
- Lay out and organize your notes. Since you are studying every day, you can review topics you find most difficult. Focus on potential economics areas that might prove challenging for you.
- A good night sleep is essential for test takers. Your mind should be fresh, alert and well rested. Also, be sure to eat before the exam.
- Benefit from online academic exam help online. There are economics resources that are advantageous for students especially if you want to expand your knowledge on various topics. You can check out some PhD exam help services.
- Other great exam preparation tips are to use pre test sample and get free online exam preparation guide from professionals. With economics pre test, you can practice answering questions and know the format of your exam.