Economics Quiz

What is the definition of a consumer?

• A buyer or person who needs a good or service.

• The willingness to buy goods at a given price.

• When you give up something to obtain something else.

• It is when supply is too low.

What is the definition of a producer?

• When supply is too high

• The willingness to buy goods at a giver price

• A person or company that makes good or provides service.

• When supply is too low.

What is the definition of supply?

• How much demand is available

• How much of a good is available

• The willingness to buy goods at a given price

• When you want something really bad

What is the definition of demand?

• How much demand is available

• How much of a good is available

• The willingness to buy goods at a given price

• When you want something really bad

What of the following is an example of economic interdependence?

• Jonael buys a shirt at one store and a hat at another.

• A farmer in Iowa grows food to feed his own family.

• Two supermarkets in the same town sell different

• The United States gets metals from and sends electronics to China.

Imagine a delicious pie being cut into slices to share with friends. If there are only a few slices but many friends who want some. What is this an example of?

• demand

• scarcity

• consumer

• incentives

Read the paragraph below. Opportunity cost is the value of the next best alternative that is given up when a decision is made. Imagine a student named Mia who has $5 to spend at the school book fair. She can either buy a new book for $3 or a set of colored pencils for $2. If Mia chooses to buy the book, her opportunity cost is the set of colored pencils she could have bought instead. Conversely, if she chooses the colored pencils, her opportunity cost is the book she could have purchased. Understanding opportunity cost helps us make smart choices by considering what we are giving up in order to gain something else. What is the opportunity cost in this example?

Which economic idea is represented in this example? Companies gather minerals in Mongolia to make iPhone screens. Minerals are shipped to Japan to assemble screens. Screens are then shipped to China where iPhone is assembled. iPhones are shipped to Lexington, KY to be sold.

• global interdependence

• high consumer demand

• supply shortage

• scarcity

Mexico's focus on manufactured goods, coffee, and cotton is an example of which economic principle?

• market price

• specialization

• opportunity cost

• scarcity

Which situation will lead to the highest prices?

• High Supply, Low Demand

• High Supply, High Demand

• Low Supply, Low Demand

• Low Supply, High Demand