SOL CE 11: Basics of Economics

The inability to meet all wants and needs at the same time, which leads to choices needing to be made is known as?

• Opportunity Cost

• Scarcity

• Demand

• Incentives

Tom has been saving for a trip to Rome after college. Tom however chooses to spend the money he had been saving on graduate school. The trip to Rome is called the what of Tom's decision?

• Incentive

• Resource

• Opportunity Cost

• Scarcity

A restaurant is in the process of opening. It has to first purchase stoves, plates, utensils, and lighting. These products serve as what type of resource for the restaurant?

• Capital

• Natural

• Human

• Entrepreneurial

All economies have to answer three basic questions. Which of these is not one of them?

• What goods and services will be produced?

• Who will produce the goods and services?

• For whom are the goods and services being produced?

• How much will the goods and services cost?

What form of economy is based on profit, competition, and consumer sovereignty? The government plays little to no role in this economy.

• Free Market Economy

• Command Economy

• Mixed Economy

• Traditional Economy

What form of economy is planned and controlled centrally by the government? There is no individual choice nor any competition.

• Free Market Economy

• Command Economy

• Mixed Economy

• Traditional Economy

What form of economy has shared decision-making between individuals and the government? Individuals plan for the private sector, while the government plans for the public sector.

• Free Market Economy

• Command Economy

• Mixed Economy

• Traditional Economy

What form of economy is very simple and based on techniques that have been used and worked for hundreds of years? Often children have the same jobs as their parents and grandparents.

• Free Market Economy

• Command Economy

• Mixed Economy

• Traditional Economy

The type of economy that a nation has is based upon what factor?

• The price of goods and services.

• The number of businesses that are operating.

• The size of the population.

• The amount the government is involved.

Every economy must face the problem of...

• Profit

• Consumer Sovereignty

• Competition

• Scarcity