Basic Economic Concepts — Engineering Board Exam Practice Questions

8 free engineering board exam reviewer questions on Basic Economic Concepts (Engineering Economics), each with the correct answer and a worked solution.

1. Which of the following best describes "necessity" goods in economics?
2. Which of the following best describes "luxury" goods?
3. According to the law of demand, as the price of a good increases (all else equal), what happens to the quantity demanded?
4. According to the law of supply, as the price of a good increases (all else equal), what happens to the quantity supplied?
5. In a perfectly competitive market, how many buyers and sellers are typically present, and what is their influence on price?
6. A market situation with only one seller and many buyers is called:
7. A market situation with only one buyer and many sellers is called:
8. A market situation with only a few sellers dominating the market is called: