Exploring the Undercover Economist's Insights: A GCSE Economics Quiz

The Undercover Economist Strikes Back: A GCSE Quiz

Based on the book 'The Undercover Economist Strikes Back' by Tim Harford, this quiz tests your understanding of key economic concepts and their real-world applications. Drawing from Harford's accessible explanations and examples, the questions cover topics such as scarcity, marginal thinking, the price mechanism, information asymmetry, incentives, game theory, externalities, and the role of government.

Multiple Choice Questions

1. According to the book, what is the fundamental economic problem faced by society?

   1. Lack of resources
   2. Scarcity of resources
   3. Unequal distribution of resources
   4. Overconsumption of resources

2. What does Harford mean by 'marginal thinking'?

   1. Considering the additional benefits and costs of a decision
   2. Always choosing the option with the highest overall benefit
   3. Prioritizing short-term gains over long-term consequences
   4. Ignoring sunk costs and focusing only on future costs

3. Which concept does Harford use to explain how prices allocate scarce resources?

   1. The price mechanism
   2. Supply and demand
   3. Market equilibrium
   4. All of the above

Short Answer Questions

1. Explain the concept of information asymmetry and provide an example from the book.
2. How does Harford use the concept of incentives to explain human behavior in various situations?
3. Describe the role of game theory in understanding strategic decision-making, as discussed in the book.

Essay Question

1. Harford discusses the role of government in addressing market failures, such as externalities. Critically evaluate the arguments for and against government intervention in markets, using examples from the book.

To check your understanding, review the relevant chapters and Harford's explanations of these key economic concepts. Good luck!