BTC Chapter 2 - Quiz

The principle of scarcity states that there are limited resources for satisfying unlimited needs and wants.

• True

• False

How many factors of production are there

• three

• four

• five

• six

People who produce goods and services are:

• entrepreneurial resources

• labor resources

The three basic economic questions include all but which answer is not correct

• What should be produced?

• How should it be produced?

• When should it be produced?

• Who should share in what is produced?

In a market economy, economic decisions are primarily made:

• by the government

• in the marketplace

• by the president

In a market economy, citizens are responsible for:

• being informed

• making careful decisions

• all of the above

The amount or quantity of goods and services that consumers are willing to buy at various prices is:

• supply

• demand

• equilibrium

• capacity

The contest between businesses to attend customers is:

• profit

• competition

Most nations have a:

• market economy

• command economy

• mixed economy

Which is most likely to happen when the price for a good or service is high?

• demand falls

• profit rise

• supply increases

• competition decreases