Economics Quiz

What is an example of a capital resource?

• computers

• human workers

• factories

__________ often leads to people wanting more than they can have due to limited resources.

• surplus

• scarcity

• consumer

• producer

You have $5.00 for the ballpark concession stand. You want to buy a Coke for $2.50 and a hot dog for $3.50 but realize you cannot afford both. You decide on the hot dog. What is your opportunity cost?

• the hot dog

• the Coke

You have limited money with which to buy lunch while out with friends. What is the most likely short-term consequence of choosing to spend all of the money on a pack of cookies in the morning?

• getting hungry in the afternoon

• saving money for another lunch

• giving up eating lunch tomorrow

• deciding to eat cookies for lunch every day

Birmingham city council has $100,000 to spend on city improvements. The council may choose to spend this money on buying two new fire trucks or updating four local parks. Which of the following is a trade-off of choosing to spend the money on our local parks?

• Firefighters must use older trucks.

• Local parks will be open for shorter hours.

• More people will enjoy visiting local parks.

• No money will be available to pay firefighters.

Deciding which resource can be used effectively is an example of

• allocating resources

• creating resources

• distributing resources

In a _____ economy, buyers and sellers make all the decisions but, in a ______ economy, the government controls all the decisions.

• command, market

• market, command

A negative incentive is known as a

• reward

• penalty

What is a non-monetary incentive?

• a $50 bonus

• 4 hours off work

____ are goods or services sold within a country that is produced in another country.

• Exports

• Imports