Introduction to Economics (Basics)

What is the term used for the value of the next best alternative given up when a decision is made?

• Opportunity Cost

• Scarcity

• Trade-off

• Production cost

What type of economic system is characterized by private ownership of resources and free market competition?

• Communism

• Command

• Capitalism

• Socialist

• Traditional

Mia, Aiden, and Ethan are planning a party. They have a limited budget (resources) but a long list of things they want for the party (wants). What economic problem are they facing?

• Unlimited resources and limited wants

• Limited resources and unlimited wants

• Unlimited resources and limited needs

• Limited needs and unlimited wants

Abigail, Aiden, and James are running a lemonade stand. What is the money they earn primarily used for in their small economy?

• To increase their wealth

• To reduce scarcity of lemonade

• To facilitate trade of lemonade for other goods

• To limit consumption of lemonade

Samuel is a professional photographer. He captures beautiful moments at weddings, birthdays, and other events. In economics, what is the term used for these actions or activities that Samuel performs for Daniel and Avery?

• Goods

• Services

• Needs

• Wants

Abigail, Noah, and Sophia are discussing about different types of economies. They are particularly interested in a command economy. In such an economy, who would be responsible for deciding all three economic questions of what, how, and for whom to produce?

• Businesses

• Consumers

• Government

• Entrepreneurs

Anika, Abigail, and William are planning to start a lemonade stand. According to the text, what fundamental question must they answer?

• How much lemonade to produce?

• When to produce the lemonade?

• Where to produce the lemonade?

• What type of lemonade, how, and for whom to produce?

Evelyn, Emma, and Anika are studying different types of economies in their social studies class. They learned about an economy that relies primarily on self-contained communities and is usually based on farming, herding, or hunting. Can you help them identify what type of economy it is?

• Traditional economy

• Command economy

• Market economy

• Socialist economy

Zoe, Avery, and Abigail are studying different types of economies. They are currently discussing a command economy. In this type of economy, who would be responsible for deciding all three economic questions?

• Businesses

• Consumers

• Government

• Entrepreneurs

Lily, David, and Oliver are discussing about different economic systems. They are trying to identify the system that is characterized by private ownership of resources and free market competition. What type of economic system are they referring to?

• Businesses

• Consumers

• Government

• Entrepreneurs