Economics test
Economics is full of ideas that sound like common sense and aren’t: that trade has a winner and a loser, that printing money makes people richer, that money already spent should decide what you do next.
Two people freely agree to a trade. Who usually benefits?
About this test
Every wrong answer here is a named mistake, explained after each question. At the end you get a course that starts from the ones that caught you.
Questions people ask
What is opportunity cost?
The value of the best thing you give up when you choose something. It’s why even free things have a cost: your time could have gone elsewhere.
What is the sunk cost fallacy?
Letting money or effort you’ve already spent, and can’t get back, drive a decision about the future.
Does printing money make a country richer?
Not by itself. Wealth is what an economy can produce. More money without more production mostly means higher prices.
Is this an economics quiz for people who haven’t studied it?
Yes. The questions are about ideas you meet in the news: trade, prices, inflation, deficits. You don’t need any theory, and each answer explains the reasoning in plain words.
What do economists mean by opportunity cost?
What you give up by choosing one thing over the next best alternative. A free ticket still costs you the evening, because that evening could have been spent another way.
