Economics Quiz 2

When people want more than they have the money for and the goods and services that are available are limited, what problem results from these two conditions?

• human resources

• scarcity

• capital goods

• opportunity cost

Which system guarantees that everyone will get a share of scarce products?

• first-come, first-served

• lottery

• rationing

• command

You decide to spend your money to buy a new hat, instead of using it to go to the movies or buying a book. What does the fact that you can no longer use that money to go to the movies illustrate?

• economic scarcity

• goods and services

• an oppurtunity cost

• a public good

What allocation method gives out resources by assigning people a number and letting only those selected use the resource?

• rationing

• "first-come, first serve"

• lottery system

• command system

The word ALLOCATE means...

• how a product should be produced

• what type of product should be produced

• what resources are needed to produce the product

• how to give out what is produced

What happens when the supply of a product is equal to the demand for it?

• the price goes up

• the price goes down

• the price stays the same

• the situation will never happen

What happens when the supply of a product is low and the demand for that product is high?

• The price goes up

• The price goes down

• The price stays the same

• The situation will never happen

What happens when the supply of a product is high and the demand for the product is low?

• The price goes up

• The price goes down

• The price stays the same

• The situation will never happen

9) which of the following is a PRODUCER?

• bake

• buy

9) which of the following is a CONSUMER?

• build

• eat