Basic Economics

1. 1. In a market economy, prices are primarily determined by:

• the interaction of supply and demand
• consumer preferences
• random chance
• government control

2. 2. When a country export more than it imports it experiences a:

• Increased unemployment
• Economic recession
• Trade surplus
• Trade deficit

3. The term " Opportunity Cost" refers to:

• The potential benefit that is given up when one alternative is chosen over another.
• The cost of an opportunity
• The cost of goods and services
• The cost of living expenses

4. 4. The Federal Reserve is responsible for:

• Printing and distributing currency to the public
• Setting interest rates for credit cards only
• Regulating the stock market
• Regulating the nation's monetary policy, supervising and regulating banks, and providing financial services to the government and financial institutions.

5. 5. Elasticity measures how sensitive the quantity demanded or supplied is to a change in:

• Temperature
• Color
• Price
• Time

1. 6. The interaction of buyers and sellers in the market is known as?

7. 7. The total value of a country's export minus its import is called the:

8. 8. Hyperinflation is an extremely high and typically _______inflation rate