Grade 9 Economics Test
Section 1: Basic Concepts (1–5)
1. What is the basic economic problem? A) Unlimited resources and unlimited wants B)
Scarcity of resources vs. unlimited wants C) Perfect equilibrium in markets D)
Government control of prices
2. Which of the following is a factor of production? A) Technology B) Money C) Capital D)
Advertising
3. Opportunity cost is best defined as: A) The price paid for a good or service B) The next
best alternative foregone C) Total revenue minus total cost D) Government taxes on
purchases
4. Which economic system relies primarily on custom and tradition? A) Command economy
B) Market economy C) Traditional economy D) Mixed economy
5. In a market economy, prices are determined by: A) Government decree B) Supply and
demand C) Tradition and culture D) International treaties
Section 2: Supply & Demand (6–15)
6. The law of demand states that, ceteris paribus, when price falls, quantity demanded: A)
Falls B) Rises C) Remains the same D) Becomes zero
7. The law of supply states that, ceteris paribus, when price rises, quantity supplied: A)
Rises B) Falls C) Remains the same D) Becomes zero
8. A surplus occurs when: A) Quantity demanded exceeds quantity supplied B) Quantity
supplied exceeds quantity demanded C) Demand curve shifts right D) Supply curve
shifts left
9. A shortage occurs when: A) Quantity supplied exceeds quantity demanded B) Quantity
demanded exceeds quantity supplied C) Demand curve shifts left D) Supply curve shifts
right
10.Which factor would shift the demand curve to the right? A) An increase in consumer
income for a normal good B) A fall in the price of a substitute C) A rise in the price of the
good itself D) A decrease in population
11.Which factor would shift the supply curve to the left? A) A decrease in production costs
B) A technological improvement C) Higher taxes on producers D) A subsidy to producers
12.Elastic demand means consumers are: A) Unresponsive to price changes B) Highly
responsive to price changes C) Only buying essentials D) Purchasing on credit
13.Inelastic demand means consumers are: A) Unresponsive to price changes B) Highly
responsive to price changes C) Avoiding luxury goods D) Saving more
14.Which is a public good? A) A private car B) National defense C) A sandwich D) A movie
ticket
, 15.A monopoly exists when: A) Many firms produce identical products B) One firm controls
the entire market C) A few firms dominate the market D) Firms freely enter and exit
Section 3: Market Structures & Competition (16–20)
16.Perfect competition is characterized by: A) Price-setting firms B) Barriers to entry C)
Many firms selling identical products D) A single seller
17.Which market structure features differentiated products and many sellers? A) Monopoly
B) Oligopoly C) Monopolistic competition D) Perfect competition
18.Gross Domestic Product (GDP) measures: A) Total income of citizens abroad B) Total
value of goods/services produced domestically C) Government spending only D)
National debt
19.Inflation is defined as: A) A sustained increase in the general price level B) A sustained
fall in the general price level C) A measure of unemployment D) Growth in GDP
20.Deflation is defined as: A) A sustained increase in prices B) A sustained decrease in
prices C) Increased economic output D) Higher employment
Section 4: Unemployment & Government Finance (21–30)
21.Unemployment rate measures: A) % not working and not seeking work B) % of labor
force without a job but seeking work C) Ratio of total population to jobs available D)
Number of retirees
22.Frictional unemployment occurs when: A) Jobs are lost due to technology B) Workers
voluntarily switch jobs C) There is no demand for labor D) Wages are too high
23.Structural unemployment is caused by: A) Natural disasters B) Workers lacking required
skills C) Seasonal changes D) Business cycles
24.Cyclical unemployment is associated with: A) Seasonal industries B) Friction in job
matching C) Economic recessions D) Technological shifts
25.A budget deficit occurs when: A) Government spending equals revenue B) Government
spending is less than revenue C) Government spending exceeds revenue D)
Government imposes no taxes
26.A budget surplus occurs when: A) Government spending equals revenue B) Government
spending is less than revenue C) Government spending exceeds revenue D)
Government issues bonds
27.Which tax is proportional to income? A) Progressive tax B) Regressive tax C)
Proportional (flat) tax D) Luxury tax
28.A progressive tax system means: A) Everyone pays same percentage B) Higher-income
earners pay a higher percentage C) Lower-income earners pay a higher percentage D)
No one pays taxes
29.A regressive tax system means: A) Everyone pays same percentage B) Higher-income
earners pay a higher percentage C) Lower-income earners pay a higher percentage D)
No one pays taxes
Section 1: Basic Concepts (1–5)
1. What is the basic economic problem? A) Unlimited resources and unlimited wants B)
Scarcity of resources vs. unlimited wants C) Perfect equilibrium in markets D)
Government control of prices
2. Which of the following is a factor of production? A) Technology B) Money C) Capital D)
Advertising
3. Opportunity cost is best defined as: A) The price paid for a good or service B) The next
best alternative foregone C) Total revenue minus total cost D) Government taxes on
purchases
4. Which economic system relies primarily on custom and tradition? A) Command economy
B) Market economy C) Traditional economy D) Mixed economy
5. In a market economy, prices are determined by: A) Government decree B) Supply and
demand C) Tradition and culture D) International treaties
Section 2: Supply & Demand (6–15)
6. The law of demand states that, ceteris paribus, when price falls, quantity demanded: A)
Falls B) Rises C) Remains the same D) Becomes zero
7. The law of supply states that, ceteris paribus, when price rises, quantity supplied: A)
Rises B) Falls C) Remains the same D) Becomes zero
8. A surplus occurs when: A) Quantity demanded exceeds quantity supplied B) Quantity
supplied exceeds quantity demanded C) Demand curve shifts right D) Supply curve
shifts left
9. A shortage occurs when: A) Quantity supplied exceeds quantity demanded B) Quantity
demanded exceeds quantity supplied C) Demand curve shifts left D) Supply curve shifts
right
10.Which factor would shift the demand curve to the right? A) An increase in consumer
income for a normal good B) A fall in the price of a substitute C) A rise in the price of the
good itself D) A decrease in population
11.Which factor would shift the supply curve to the left? A) A decrease in production costs
B) A technological improvement C) Higher taxes on producers D) A subsidy to producers
12.Elastic demand means consumers are: A) Unresponsive to price changes B) Highly
responsive to price changes C) Only buying essentials D) Purchasing on credit
13.Inelastic demand means consumers are: A) Unresponsive to price changes B) Highly
responsive to price changes C) Avoiding luxury goods D) Saving more
14.Which is a public good? A) A private car B) National defense C) A sandwich D) A movie
ticket
, 15.A monopoly exists when: A) Many firms produce identical products B) One firm controls
the entire market C) A few firms dominate the market D) Firms freely enter and exit
Section 3: Market Structures & Competition (16–20)
16.Perfect competition is characterized by: A) Price-setting firms B) Barriers to entry C)
Many firms selling identical products D) A single seller
17.Which market structure features differentiated products and many sellers? A) Monopoly
B) Oligopoly C) Monopolistic competition D) Perfect competition
18.Gross Domestic Product (GDP) measures: A) Total income of citizens abroad B) Total
value of goods/services produced domestically C) Government spending only D)
National debt
19.Inflation is defined as: A) A sustained increase in the general price level B) A sustained
fall in the general price level C) A measure of unemployment D) Growth in GDP
20.Deflation is defined as: A) A sustained increase in prices B) A sustained decrease in
prices C) Increased economic output D) Higher employment
Section 4: Unemployment & Government Finance (21–30)
21.Unemployment rate measures: A) % not working and not seeking work B) % of labor
force without a job but seeking work C) Ratio of total population to jobs available D)
Number of retirees
22.Frictional unemployment occurs when: A) Jobs are lost due to technology B) Workers
voluntarily switch jobs C) There is no demand for labor D) Wages are too high
23.Structural unemployment is caused by: A) Natural disasters B) Workers lacking required
skills C) Seasonal changes D) Business cycles
24.Cyclical unemployment is associated with: A) Seasonal industries B) Friction in job
matching C) Economic recessions D) Technological shifts
25.A budget deficit occurs when: A) Government spending equals revenue B) Government
spending is less than revenue C) Government spending exceeds revenue D)
Government imposes no taxes
26.A budget surplus occurs when: A) Government spending equals revenue B) Government
spending is less than revenue C) Government spending exceeds revenue D)
Government issues bonds
27.Which tax is proportional to income? A) Progressive tax B) Regressive tax C)
Proportional (flat) tax D) Luxury tax
28.A progressive tax system means: A) Everyone pays same percentage B) Higher-income
earners pay a higher percentage C) Lower-income earners pay a higher percentage D)
No one pays taxes
29.A regressive tax system means: A) Everyone pays same percentage B) Higher-income
earners pay a higher percentage C) Lower-income earners pay a higher percentage D)
No one pays taxes
