Elementary Economics Quiz

What is the law of supply and demand?

• The higher the price, the higher the quantity demanded

• The higher the price, the lower the quantity demanded

• The higher the price, the higher the demand is

• The lower the price, the lower the quantity demanded

What is inflation?

• A decrease in the overall price level

• An increase in the overall price level

• A decrease in the quantity of money in circulation

• An increase in the quantity of money in circulation

What is a monopoly?

• A market structure with many sellers and buyers

• A market structure with only one seller

• A market structure with few sellers and many buyers

• A market structure with no sellers and buyers

What are needs in economics?

• Desires that are necessary for survival

• Desires that are not necessary for survival

• Goods and services that are necessary for survival

• Goods and services that are not necessary for survival

What are wants in economics?

• Desires that are necessary for survival

• Desires that are not necessary for survival

• Goods and services that are necessary for survival

• Goods and services that are not necessary for survival

What is a budget?

• A plan for spending and saving money

• The total amount of money a person has

• The amount of money earned from a job

• The amount of money spent on wants

What happens to the price of a product when there is high demand and low supply?

• The price increases

• The price decreases

• The price remains the same

• The price fluctuates

What is the opposite of inflation?

• Deflation

• Recession

• Monopoly

• Budget

What is the main goal of a monopoly?

• To provide goods and services at the lowest price

• To maximize profits

• To promote competition

• To ensure consumer satisfaction

What is the difference between needs and wants?

• Needs are necessary for survival, wants are not

• Needs are not necessary for survival, wants are

• Needs are goods and services, wants are desires

• Needs are desires, wants are goods and services