Economics Basics Quiz

What is economics?

• The study of how people meet their wants and needs

• The study of how people make money

• The study of how people save money

• The study of how people spend money

What are the effects of economic activity?

• Increased unemployment

• Decreased production

• Increased inflation

• Increased economic growth

How do economic systems differ?

• By the types of goods and services produced

• By the level of government control

• By the amount of money people make

• By the number of consumers in the market

How can people make the most of their money?

• By saving and budgeting

• By spending all their money

• By investing in risky ventures

• By borrowing and using credit

What is scarcity?

• Having unlimited resources to meet unlimited wants

• Having limited resources to meet unlimited wants

• Having unlimited resources to meet limited wants

• Having limited resources to meet limited wants

What are the factors of production?

• Land, labor, and capital

• Money, labor, and goods

• Supply, demand, and cost

• Opportunity, demand, and profit

What is the opportunity cost?

• The cost of what you have to give up

• The cost of what you want to buy

• The cost of what you have already spent

• The cost of what you plan to save

What is demand?

• The desire for a certain good or service

• The ability and willingness to produce a good or service

• The price of a certain good or service

• The cost of making one more unit of a product

What is supply?

• The desire for a certain good or service

• The ability and willingness to produce a good or service

• The price of a certain good or service

• The cost of making one more unit of a product

What are producers?

• People or businesses that buy goods and services

• People or businesses that sell goods and services

• People or businesses that make goods and services

• People or businesses that consume goods and services