Economics Assessment

What is economics?

• the way a society organizes the production of goods
• the study of how people make decisions with limited resources
• the financial well-being of a country
• the goods and services a country produces

What forces people to make economic choices?

• need for shelter
• abundance of goods
• scarcity of resources
• desire for profit

According to rational economic decision making, we should accept an option when

• the costs outweigh the benefits
• the benefits outweigh the costs
• there are no costs
• there are no benefits

The loss of income resulting from your decision to call in sick to work is called?

• marginal cost
• variable cost
• opportunity cost
• total cost

Which of the following sells a service rather than goods?

• frozen custard shop
• dentist office
• mall
• grocery store

The resources needed to produce goods and services are called?

• inputs and outputs
• factors of production
• factor markets
• product markets

The Gross Domestic Product examines the

• quality of final goods produced
• amount of intermediate goods produced
• volume of used goods sold in public markets
• total value of goods and services produced

The government sector of the United States receives most of its revenues from

• the factor market
• fees collected from citizens using its services
• taxes on individuals and businesses
• the product market

Nations experience economic growth when their

• total output of goods and services increases
• total output matches their total inputs
• human resources exceed their natural resources
• imports equal their exports

Which of the following BEST defines free enterprise?

• Individuals may start new business ventures at no cost
• Buyers and sellers may conduct business voluntarily in the marketplace
• Businesses may compete without government interference
• Individuals may buy and sell property without paying taxes