What is Economics? Entry Quiz

Economics is the study of how people try to satisfy their needs and wants through the careful use of...

• division of labor practices

• financial budgets

• nondurable goods

• scarce resources

What two characteristics must an item possess to have monetary value?

• capital and transferability

• scarcity and capital

• transferability and utility

• utility and scarcity

What three basic economic questions must all societies answer? Select ALL that apply.

• What to Produce

• When to Produce

• How to Produce

• For Whom to Produce

In the United States, consumer spending influences what type of economic decision?

• goods to produce

• production methods to follow

• government services to provide

• automation techniques to employ

The two broad groups of people whose choices drive the economy are...

• consumers and laborers

• entrepreneurs and producers

• laborers and entrepreneurs

• producers and consumers

What are the four factors of production?

• land, capital, labor, entrepreneurs

• government, entrepreneurs, laborers, consumers

• safety, choices, competition, consumer protection

• durable goods, nondurable goods, consumer goods, capital goods

Examples of idle resources include: _______________________________ (Select ALL that apply.)

• a labor strike

• an empty factory

• a farmer selecting seeds

• an engineer reviewing plans

What are the effects of job specialization? Select ALL that apply.

• self-sufficiency

• increased efficiency

• economic interdependence

• weaker international cooperation

The relationship between producers and consumers can best be described as

• linear

• circular

• parallel

• parabolic

What term describes a society in which the majority of economic choices are made without government interference?

• entrepreneurial

• factor market

• free enterprise

• product market