Basics of Economics Quiz Review

What is Economics?

• The study of how people make money

• The study of how people spend money

• The study of how people satisfy their wants and needs

• The study of how governments work to reduce scarcity

What is the difference between goods and services?

• Goods are tangible products while services are intangible products

• Goods are intangible products while services are tangible products

• Goods and services are the same thing

• None of these

What is the difference between wants and needs?

• Wants are necessary for survival while needs are not

• Needs are necessary for survival while wants are not

• Wants and needs are the same thing

• None of these

What is Scarcity?

• The absence of resources to meet to the unlimited wants and needs

• A perfect balance of resources to meet a balance of wants and needs

• An unlimited amount of resources to meet limited wants and needs

• A limited amount of resources to meet unlimited wants and needs

Why do we have scarcity?

• Because we do not have enough resources to satisfy all of our wants and needs

• Because resources are unlimited

• Because we have too many resources

• None of these

Which of the following is not one of the 3 causes of scarcity?

• Poor Distribution of Resources

• Increase in Taxation Rates

• Rapid Increase in Demand

• Personal Perspective

Which of the following is not one of the 3 solutions to scarcity?

• Creating more resources

• Making better use of our resources

• Doing without something

• Hoarding resources in a shortage

What is a traditional economy?

• An economy where goods and services are produced based on custom and tradition

• An economy where the government controls all aspects of production

• An economy where goods and services are produced based on the demand of the market

•  An economy where elements of command and market economies are present

What is a command economy?

• An economy where goods and services are produced based on custom and tradition

• An economy where the government controls all aspects of production

•  An economy where goods and services are produced based on the demand of the market

• An economy where elements of command and market economies are present

What is a market economy?

• An economy where goods and services are produced based on custom and tradition

• An economy where the government controls all aspects of production

• An economy where goods and services are produced based on the demand of the market

• An economy where elements of command and market economies are present