Basics of Economics Individual Practice

Which is an example of proprietorship?

• Edward owns a restaurant. He is responsible for all the restaurant's debts.

• Roberta owns stock in a steel company. She receives a portion of the company's profits.

• Juan and Phillip own a bookstore. They are both responsible for the bookstore's debts.

• Janet and Miriam own a flower shop. They share equally in the shop's profits.

Which term completes this economic flow?

• Taxes

• Income

• Savings

• Investment

What determines price?

• Choice

• Incentives

• Supply and Demand

• Opportunity Cost

Opportunity Cost is-

• The inability to satisfy all wants and needs at the same time

• Amount of money exchanged for a good or service

• What is given up when a choice is made

• The factor used by companies to motivate you to pay the cost of their items

North Korea is an example of this where there is no individual choice, no competition, and the economy is controlled by the government.

• Mixed

• Command

• Market

• Corporation

All economies must answer these questions, except?

• What will be produced?

• What could be produced at a lower cost?

• How will it be produced?

• For whom will it be produced?

Gary normally works on the weekends. What is his opportunity cost if he starts working after school on Thursdays and Fridays?

• The additional hours he could work

• The new video games he could buy with his bigger paycheck

• The time he could spend at football practice

• The extra money he could earn and save up

What is consumer sovereignty?

• When consumers have the most influence in a free market economic system

• When consumers buy less of a product and a business decided to make more of it

• When producers hold Buy One, Get One Free deals on their merchandise

• When the government has the most influence because they know what is best for producers and consumers

A discount, like Buffalo Wild Wings Buy One, Get One Free wings on Thursdays is an example of what?

• a resource

• capital

• consumption

• an incentive

Ms. Wood has designed a new sneaker where the toes light up when you click your heels together. She is taking a risk by making this new product to try to earn a profit, what is this an example of?

• Proprietorship

• Corporation

• Entrepreneurship

• Free Market Producer