Economics Quiz

What is the opposite of scarcity?

• Limited Resources

• Abundance

• Shortage

• An economic problem

If the demand for a product increases and supply remains high, producers typically increase the price of their goods.

• True

• False

Banks deposit money.

• True

• False

How do banks make money?

• Making loans, accepting deposits, apply interest on loans given

• Apply interest on loans given, make loans, accept deposits

• Accept deposits, make loans, apply interest on loans given

• Accept deposits, apply interest on loans given, make loans

Which of the following is NOT an example of human capital?

• Higher education

• Health

• Vacation

• Abilities

What is human capital?

• Human clothes and shoes

• Human skills and knowledge

• Human money

• Human cars

Producing is cheap in the United States so most sellers produce their products here.

• True

• False

What is not an external cost?

• Environmental degradation

• Health problems

• Materials needed to create a product

• Unemployment due to increased technology

What is a capital good?

• any good used to help increase future production

• any goods used by consumers and have no future productive use

Wood is an example of a capital good.

• True

• False