Economics Quiz 1

How does a country determine what kind of economy they will have?

• By using a free market approach

• By determining how much money they want to print for their country

• By how the president decides is the best way.

• By how they answer the three economic questions.

What answer choice best fill out the blanks?

FOP

1. ____-used to make goods

2. _____-a person that does something

3. _______-manmade things used to make other things

• scarcity, opportunity cost, labor

• Land, Labor, Capital

• Scarcity, Cost, Resources

• Labor, Capital, Land

Two friends named Benjamin Franklin and Rafael Marquez, spend $20 buying pizza. What answer choice below is the opportunity cost of buying this pizza?

• Enjoying the pizza

• Getting change after buying the pizza.

• Buying McDonalds instead

• Having the opportunity to enjoy the cost.

Whenever a business makes a big decision to invest on equipment, this is an approach that weighs the benefits of an action against its costs. Which is also called what?

• Cost-Benefit Analysis

• 3 Economic Questions

• Scarcity

• Costing opportunity FOP

Two friends named Thomas Jefferson and Jalen Green are trying to figure out what kind of government owns the means of production. Which of the answer choices below answer their question?

• Mixed Economy

• Free Enterprise Economy

• Traditional Economy

• Communist Economy

This kind of economy assumes that people naturally want to cooperate to serve the "common good" to provide services and programs like free healthcare and free college education.

• Free market Economy

• Enterprise Economy

• Socialist Economy

• Private Ownership economy

The exchange of goods and services that is driven by self interest is what kind of economy?

• Socialist Economy

• Free Enterprise Economy

• Communist Economy

• Traditional Economy

A student named Marshall Mathers is trying to figure out the following question. What does the word "free" mean in the word free market/enterprise? What is the correct answer choice?

• Free of charge for everyone to use.

• Free of opportunity cost

• Free of scarcity

• Free of Government regulation

In order for someone to be efficient, People are only going to make what they can sell. This is simply called what?

• Private Ownership

• Free Market Economic Efficiency

• Law of Demand

• Opportunity Cost

This picture is describing what?

• Cost Benefit Analysis

• Private Ownership

• Law of Diminishing Marginal Utility

• Law of Demand