EPF 2 Quiz/Test

What is a producer?

• people who make or grow goods

• people who make or grow goods and provide services

• people who make or sell goods and provide services

• people who provide services

What is a consumer?

• people who eat what their want

• people who buy goods to satisfy their wants

• people who use services to satisfy their wants.

• people who buy or use goods and services to satisfy their wants.

What are the three key economic questions every society must answer?

• Where

• How

• Who

• What

What is consumer sovereignty?

• when individuals have the spending power to choose what to buy and not influence what is produced

• when governments have the spending power to choose what to buy and influence what is produced

• when individuals have the power to choose what to buy and influence what is produced

• when individuals have the spending power to choose what to buy and influence what is produced

What method of production do producers choose?

• The cheapest

• Any way that makes money

• The most profitable

• The easiest

What is revenue?

• the total amount of income generated by the sale of goods or services related to the company’s primary operations.

• the total amount of profit generated by the sale of goods or services related to the company’s primary operations.

• the money you get to put in your pocket

• the cost of everything it took to make a good

What is price?

• s the amount a customer is willing to pay for a service.

• the amount a customer is willing to pay for a product.

• the amount a customer is willing to pay for a product or service.

• the stick under an item in Target.

___________ is when the free market alone controls the production of goods and services.

• Socialism

• Capitalism

• Communism

_________ is also known as collective ownership of resources managed by the government.

• Socialism

• Capitalism

• Communism

What is an example of socialism?

• Nurses

• Doctors

• Lawyers

• Military