Unit 2: Quiz 1 "Practice Questions"

Select ALL that apply:

Which of the following are ways that entrepreneurs improve the economy?

• self-confidence = stimulated economy

• no taxes

• new technology

• new businesses = no new employees

Select ALL that apply:

Which of the following are NOT ways that entrepreneurs improve the economy?

• self-confidence = stimulated economy

• no taxes

• new technology

• new businesses = no new employees

Complete the sentence:

A financial system or budget in which there is careful supervision of resources to prevent too much spending or excess is called a(n)_____.

• fixed income

• economy

• bank account

• spreadsheet

Complete the sentence:

A market economy is based on ___

• the public

• a vote

• personal choice

• no choices

Complete the sentence:

A market economy is NOT based on ___

• the public

• a vote

• personal choice

• no choices

Select ALL that apply:

Two significant parts of a market economy are _____ and _____ .

• people

• demand

• products

• supply

Complete the sentence:

If there is a great demand for a product, the price for that product will _ .

• stay the same

• be higher

• be lower

Complete the sentence:

If there is little demand for a product, the price for that product will _.

• stay the same

• be lower

• be higher

Complete the sentence:

If there is a great demand for a product, the production for that product will _.

• stay the same

• increases

• decreases

Complete the sentence:

If there is a great demand for a product, the production for that product will _.

• stay the same

• increases

• decreases